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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.          )

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.     )

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West Pharmaceutical Services, Inc.


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Table of Contents

CEO Letter

Dear Shareholders,

At West, Pharmaceutical Services, Inc.our mission is to improve patient lives. We do this through the products we offer to our customers—the world's leading pharmaceutical and biotechnology companies. However, supporting patient health means more to us than simply delivering products to the market, especially at this time across the globe as we deal with the COVID-19 pandemic.

NoticeOur team of 2018 Annual Meetingmore than 8,000 people across the globe knows that behind every product we make, is a patient for whom that product helps deliver life-saving medicines or treatments. This patient-first focus drives our team to pursue excellence in the quality of everything we produce, to serve as scientific and technical experts in our field, and to operate with integrity every day. As a result, our customers continue to seek West as a supplier of choice, and in 2019, our team's work resulted in another year of strong growth for our business.

We launched several new products to address the unique needs of our biologic, generic and pharmaceutical customers. With more than 150 patents issued to West in 2019 alone, we know we are making good progress to develop and deliver the next generation of packaging and drug delivery advancements that will drive our future growth. Our scientific and regulatory teams supported our customers throughout the year, by delivering more than 100 technical conference presentations, peer-reviewed articles and book chapters. Operating with the highest levels of quality, safety and service is a key priority for our teams across our global enterprise. We created greater efficiency by further optimizing our manufacturing footprint this past year, and we maintained the industry-leading quality levels for which we are known, while improving the safety record for our teams.

In 2019, we were proud to be recognized for our commitment to the communities in which we live and work. As will be further detailed in our 2019 Corporate Responsibility ("CR") Report (to be published later this year) we have made significant improvements across the six pillars of our CR strategy: Compliance and Ethics; Philanthropy; Health and Safety; Diversity and Talent; Environmental Sustainability; and Quality. Our team's success in these areas was noted byNewsweek, which named West to its America's Most Responsible Companies 2020 list, as well as byInvestor's Business Daily, which named West one of its 50 Best ESG (Environmental, Social and Governance) Companies.

Our Board of Directors, led by Chair Patrick Zenner, is integrally engaged in our work to continually refine our strategy and in overseeing how we manage our risks. We are fortunate to have a board diverse in thought, experience and background, to help guide us. As in years past, we have worked to ensure the performance of our team is reflected in their compensation and awards framework and is aligned with the business results we have delivered. The detailed pay-for-performance plans of our executives, which in the past have received more than 97 percent support from you, our shareholders, are detailed in this Proxy Statement.

As we look to the future, we feel confident that we are well-positioned to continue to grow our business, by expanding the products and services we provide to customers, while operating with greater efficiency and embracing technology and digital advances. All of this will result in our ability to more effectively and sustainably fulfill our mission to improve patient lives as we stand by your side during these difficult times. On behalf of West, please stay safe and well.

Thank you for your continued support of West.

GRAPHIC

Eric M. Green
President & Chief Executive Officer


Table of Contents

West Pharmaceutical Services, Inc.
Notice of 2020 Annual Meeting

530 Herman O. West Drive
Exton, Pennsylvania 19341

March 25, 2020

March 21, 2018

The 2018It is expected that the 2020 Annual Meeting of Shareholders of West Pharmaceutical Services, Inc. will be held at our corporate headquarters on:

With the global COVID-19 pandemic, and in light of current restrictions on travel and gatherings around the globe, including in the area surrounding our headquarters in Exton as of the date of this letter, West is monitoring whether the 2020 Annual Meeting will be held in person or whether we will use an alternate means of participation in the Meeting. Changes may include a change to the the date, time or venue of the meeting and/or holding a virtual meeting in accordance with Pennsylvania law. Given the fluidity of the situation, we will make a decision to change the closer to the date of the Annual Meeting. The Securities Exchange Commission ("SEC") has announced guidance permitting these changes, as long as they are announced via a press release and publicly filed with the SEC. If West decides to hold a virtual meeting, additional details will be timely provided to enable shareholder participation.

The items of business are:

Shareholders of record of West common stock at the close of business on March 6, 201810, 2020 are entitled to notice of, and to vote at, the meeting and any postponements or adjournments thereof.

George L. Miller

Sr. Vice President, General Counsel
and Corporate Secretary

Corporate SecretaryImportant Notice Regarding the Internet Availability of Proxy Materials for the Shareholder Meeting on May 5, 2020

Important Notice Regarding the Internet Availability of Proxy Materials for the Shareholder Meeting on May 1, 2018

This Notice of Annual Meeting and Proxy Statement (“Notice”("Notice") and the 20172019 Annual Report on Form 10-K (“2017("2019 Annual Report”Report") are available on our website at:

investor.westpharma.com/financial-information/annual-reports-and-proxy

http://investor.westpharma.com/phoenix.zhtml?c=118197&p=irol-reportsannualYour Vote is Important

Your Vote is Important

Please vote as promptly as possible electronically via the Internet or by completing, signing, dating and returning the proxy card or voting instruction card.




Table of Contents

Table of Contents

Table of Contents

Proxy Summary

2

1

General Information About the MeetingElection of Directors

5

6

Corporate GovernanceDirector Nominations, Skills and Board MattersCriteria

8

6

Board Commitment to Diversity and Inclusion

7

Board Refreshment and Retirement Age

8

Board Evaluation Process

8

Proposal 1—Election of Directors

9

Director Nominee Biographies

9

Board and Director Information and Policies

15

Board Leadership Structure

9

15

Chair of the Board of Directors

15

Committees

16

The Board's Role in Risk Oversight

18

Executive Officer Succession Planning

19

CEO Evaluation Process

19

Corporate Responsibility

20

2019 Shareholder Outreach

20

Communicating with the Board

15

21

Director Nominations, CriteriaEducation and DiversityOnboarding

15

21

Director CompensationCorporate Governance Documents and Polices

18

22

Corporate Governance Principles

22

Ethics and Code of Business Conduct

201722

Director Independence

23

Related Person Transactions and Procedures

23

Political Contributions and Lobbying

23

Anti-Hedging and Pledging Policies

23

Share Ownership Goals

24

Stock Ownership

25

Director Compensation

27

2019 Non-Employee Director Compensation

18

27

Outstanding Director Stock Awards at Year-End 20172019

19

28

Director Deferred Compensation Plan at Year-End 2019

20

29

Executive Compensation

21

Compensation Committee Report

26

30

Compensation Discussion and Analysis

27

31

Compensation TablesExecutive Summary: 2019 Performance at a Glance

45

31

Governance and Compensation

32

Say-on-Pay

201733

Executive Compensation Program Design

34

Factors Used in the Compensation Process

36

Business Segment Group

37

Impact of Business Results on our 2019 Incentive Plans

38

Incentive Compensation: Important Facts about Our Incentive Targets

39

Our Annual Incentive Compensation

40

Financial Measures and Adjustments

42

Our Long-Term Equity Incentive Compensation

42

2019 Compensation Decisions

44

Other Compensation Practices

49

Compensation Tables

51

2019 Summary Compensation Table

45

51

2017 Grants2019 Grant of Plan-Based Awards Table

47

55

Outstanding Equity Awards at Year-End 20172019

48

56

20172019 Option Exercises and Stock Vested Table

49

58

20172019 Pension Benefits Table

50

60

20172019 Nonqualified Deferred Compensation Table

51

61

Payments on Disability

61

Payments on Death

62

Estimated Payments Following Termination

62

53

Table of Contents

Estimated Additional Severance Payments Table

63

Payments on Termination in Connection with a Change-in-Control

54

63

CEO Pay Ratio

57

65

Financial Measures and Adjustments

58

Independent Auditors and Fees

59

Audit Committee Report

60

Items to Be Voted On

61

Proposal 1 — Election of Directors

61

Proposal 2 — 2—Advisory Vote to Approve Named Executive Officer Compensation

68

66

Proposal 3—Approval of Amendment to our Articles of Incorporation to Increase the Number of Authorized Shares of Common Stock

67

Independent Auditors and Fees

69

Audit Committee Report

70

Proposal 3 — 4—Ratification of the Appointment of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for 2018

69

71

Voting and Other Information

70

72

Stock Ownership

70

2017 Annual Report and SEC Filings

71

2019 Shareholder Proposals or Nominations

71



Table of Contents

PROXY SUMMARYGRAPHIC

GENERAL INFORMATION

Proxy Summary

Proxy Summary

Below is a summary of important information you will find in this Proxy Statement. This summary does not contain all the information that you should consider, and you should read the entire Proxy Statement carefully before voting.

Summary of Shareholder Voting Matters

Summary of Shareholder Voting Matters

Our Board of Directors is soliciting your vote on matters that will be presented at our 2020 Annual Meeting of Shareholders and at any adjournment or postponement thereof. This Proxy Statement contains information to assist you in voting your shares.

The Notice, the accompanying proxy card or voting instruction card and our 2019 Annual Report, including our annual report wrap, are being mailed starting on or about March 25, 2020.

Recommended

​  

Recommended

Proposal 1: Election of Directors

Page 9

Page
61

üFOR  FOR


 



Mark A. Buthman
William F. Feehery
Eric M. Green
Thomas W. Hofmann
Paula A. Johnson



Deborah L. V. Keller




Each Nominee


William F. FeeheryMyla P. Lai-Goldman
Robert F. FrielDouglas A. Michels
Eric M. GreenPaolo Pucci
John H. Weiland
Thomas W. HofmannPatrick J. Zenner

Each Nominee

Paula A. Johnson

Proposal 2: Advisory Vote to Approve Named Executive Officer Compensation

Page
68

66

üFOR  FOR

Proposal 3: Approval of Amendment to our Amended and Restated Articles of Incorporation to Increase the Number of Authorized Shares of Common Stock from 100 Million to 200 MillionPage 67FOR
Proposal 4: Ratification of the Appointment of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for 2018

2020

Page
69

71

FOR

ü2019 Business Highlights  FOR

Our strategy to globalize our operations and address the unique needs of the distinct customer groups we serve with a market-led focus, has delivered another strong year of growth for the Company. Some of the trends we are seeing in the pharmaceutical and biotech industry are driving our business today, and will fuel our long-term growth strategy, including the following:

Each year, we have seen growing interest and demand for our high-value product offerings, delivery device platforms and our contract-manufacturing services. Customers are also coming to West for our scientific expertise and insight into the regulatory landscape that governs our industry. This demand has translated into positive results for the business. In 2019, we reported:

2020 Annual Meeting and Proxy Statement   |   1


Table of Contents

GRAPHIC PROXY SUMMARY

Please refer to our Earnings Release filed on February 13, 2020 on Form 8-K for a full reconciliation of our reported results to the adjusted (non-U.S. GAAP) financial measures referred to above.

Long-Term Shareholder Return

Examining our results over the past five years, West has consistently delivered against its objectives, posting long-term sales growth and steady EPS improvements. The Company has also outperformed both our peers and the market overall in Total Shareholder Return ("TSR") during this same period.

Our Director NomineesGRAPHIC

(1)
Based on 2019 Consolidated Net Sales.

(2)
Please refer to our Forms 8-K report dated February 13, 2020 and January 9, 2019 for the reconciliation of non-U.S. GAAP financial matters.

(3)
Source: NASDAQ IR Insight.

Certain forward-looking statements are included in this Proxy Statement. They use such words as "will," "continue," "estimate," "expect," "looking to the future," and other similar terminology. These statements reflect Management's current expectations regarding future events and operating performance and speak only as of the date of this document. These statements are based on Management's beliefs and assumptions, current expectations, estimates, and forecasts. There are many factors that can influence the Company's future results that are beyond the ability of the Company to control or predict. Because of these known or unknown risks or uncertainties, actual results could differ materially from past results and those expressed or implied in any forward-looking statement. For a description of factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see Item 1A, entitled "Risk Factors," in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and as revised or supplemented by our quarterly reports on Form 10-Q or Form 8-K. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

2   |   2020 Annual Meeting and Proxy Statement


Table of Contents

PROXY SUMMARYGRAPHIC

Our Director Nominees

You are being asked to vote on the directors nominated below. All directors are elected annually by a majority of votes cast, except in the case of a contested election where the number of nominees exceeds the number of open positions, in which case plurality voting is used. The charts below summarize some key characteristics of the members of our Board of Directors. All data is as of March 25, 2020. Detailed information about each director’sdirector's background and areas of expertise can be found beginning on page 62.  All directors, except Mr. Green, are independent.9.

  NAME AGE DIRECTOR
SINCE

 
PRIMARY
OCCUPATION

 
CURRENT
COMMITTEE
MEMBERSHIP


 
EXPERIENCE &
EXPERTISE

 
INDEPENDENT 
  Mark A. Buthman 59 2011 Retired EVP & CFO,
Kimberly-Clark
 Compensation, Nominating & Corp
Governance, Finance
 GRAPHICGRAPHIC GRAPHIC  
  William F. Feehery 49 2012 CEO, Certara Compensation, Audit, Nominating & Corp
Governance (Chair)
 GRAPHICGRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
  Robert F. Friel 64 2020 Retired CEO and Chair,
PerkinElmer, Inc.
 Audit, Finance GRAPHICGRAPHICGRAPHICGRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
  Eric M. Green 50 2015 President & CEO,
West Pharmaceutical
Services, Inc.
   GRAPHICGRAPHICGRAPHICGRAPHICGRAPHICGRAPHIC    
  Thomas W. Hofmann 68 2007 Retired Sr. VP & CFO,
Sunoco, Inc.
 Compensation, Audit (Chair) GRAPHICGRAPHIC GRAPHIC  
  Paula A. Johnson 60 2005 President,
Wellesley College
 Innovation &
Technology, Nominating & Corp
Governance
 GRAPHICGRAPHICGRAPHIC GRAPHIC  
  Deborah L. V. Keller 57 2017 Principal, Black Frame
Advisors, LLC & Retired CEO,
Covance Drug Development
 Innovation & Technology, Audit, Finance GRAPHICGRAPHICGRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
  Myla P. Lai-Goldman 62 2014 Executive Chair
GeneCentric Therapeutics, Inc.
 Innovation & Technology (Chair), Finance GRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
  Douglas A. Michels 63 2011 Retired President & CEO, OraSure
Technologies, Inc.
 Compensation (Chair), Audit GRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
  Paolo Pucci 58 2016 Retired CEO, ArQule, Inc. Innovation & Technology, Finance (Chair) GRAPHICGRAPHICGRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
  Patrick J. Zenner 73 2002 Chair, West Pharmaceutical Services;
Retired Pres. & CEO,
Hoffmann-La Roche Inc.
 Nominating & Corp Governance GRAPHICGRAPHICGRAPHICGRAPHICGRAPHIC GRAPHIC  
GRAPHICFinancialGRAPHICHealthcare
Industry
GRAPHICInternational
Experience
GRAPHICGlobal
Operations/
Supply Chain
GRAPHICScience &
Technology
GRAPHICMarketingGRAPHICMergers &
Acquisitions
GRAPHICRegulatory

 

 

 

 

Director

 

 

 

Current Committee 
Memberships

 

Other
Current
Public

Name

 

Age

 

Since

 

Current/Previous Occupation

 

AC

 

CC

 

FC

 

ITC

 

NCGC

 

Boards

Mark A. Buthman

 

57

 

2011

 

Retired EVP & CFO, Kimberly-Clark

 

C

 

 

 

 

 

 

 

M

 

1

William F. Feehery

 

47

 

2012

 

President, Industrial Biosciences, DowDuPont

 

M

 

 

 

 

 

 

 

C

 

Eric M. Green

 

48

 

2015

 

President & CEO, West Pharmaceutical Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

Thomas W. Hofmann

 

66

 

2007

 

Retired Sr. VP & CFO, Sunoco, Inc.

 

M

 

M

 

M

 

 

 

 

 

Paula A. Johnson

 

58

 

2005

 

President, Wellesley College

 

 

 

 

 

 

 

C

 

 

 

Deborah L. V. Keller

 

55

 

2017

 

Principal, Black Frame Advisors, LLC & Retired CEO, Covance Drug Development

 

 

 

 

 

M

 

M

 

 

 

Myla P. Lai-Goldman

 

60

 

2014

 

CEO and President of GeneCentric Therapeutics, Inc.

 

 

 

 

 

M

 

M

 

 

 

1

Douglas A. Michels

 

61

 

2011

 

President & CEO, OraSure Technologies, Inc.

 

 

 

C

 

 

 

M

 

 

 

1

Paolo Pucci

 

56

 

2016

 

CEO, ArQule, Inc.

 

M

 

M

 

 

 

 

 

 

 

2

John H. Weiland

 

62

 

2007

 

Retired Vice-Chairman, President & Chief Operating Officer, C. R. Bard, Inc., which was acquired by Becton, Dickinson and Company in 2017

 

 

 

M

 

C

 

 

 

 

 

Patrick J. Zenner

 

71

 

2002

 

Chairman, West; Retired Pres. & CEO, Hoffmann-La Roche Inc.

 

 

 

 

 

 

 

 

 

M

 

2

LEGEND: M — Member; C — Chairperson; AC — Audit Committee; CC — Compensation Committee; ITC — Innovation and Technology Committee; FC — Finance Committee; NCGC — Nominating and Corporate Governance Committee

20182020 Annual Meeting and Proxy Statement|   3


Table of Contents

GRAPHIC PROXY SUMMARY

2019 Corporate Governance and Board Highlights

​  

Corporate Governance Features
Vital Board Statistics

GRAPHIC

·90.9% of the Board is independent

·27.3% of the Board is Female

·Average Tenure: 7.4 years

·Average Age: 58.3 years

·Annual director elections with majority voting in uncontested elections




·Active shareholder engagement program on corporate governance and compensation matters




·​  



Significant risk management oversight by the Board, including an enhanced enterprise risk management process






·Board is led by an Independent Non-Executive Chairman

Non-Employee Chair



·​  



Board Commitment to corporate responsibility,Corporate Responsibility ("CR"), including Compliance and Ethics, Philanthropy, Diversity and Inclusion, Health and Safety, Environmental Sustainability and Environment

Quality





·                  NewFive new directors appointed in each of thewithin past foursix years




·​  



Effective self-assessment and evaluation procedures that include individual discussions

interviews with Board members





·Annual evaluation of all directors to ensure the right mix of experience and diversity of opinion and background




·​  



Robust executive officer and Board succession planning and committee rotation








·Robust curriculum of topics regularly presented to the Board to aid in their understanding of our business, the markets in which we operate and the Board's responsibilities in respect of all our stakeholders



​  


Maintain and enforce effective executive and board stock ownership guidelines






·Prohibition on pledging or hedging of securities by members of the Board and executive officers



​  Board Governance Activities and Accomplishments

Approved and monitored Management's enterprise strategy




Reviewed performance of Chief Executive Officer ("CEO") against pre-established goals and strategy



​  


Oversaw Management's human resources strategy to create a pipeline of talent to ensure the continuance of first-rate teams





Implementation of enhanced Enterprise Risk Management Program



​  


Reviewed the Company's capital allocation strategy, increasing the annual dividend and continuing our strategic share buyback program





Oversaw significant improvements in safety and quality



​  


Multiple awards and international recognition of our CR, philanthropic and sustainability efforts





Oversaw efforts to further drive a culture of diversity and inclusivity, with Company-wide training efforts, and the initiation of two new employee resource groups



​  


All directors attended more than 75%88% of the combined total of Board and Committee meetings in 2019





All directors received greater than 99.4% support from shareholders in 2019


4   |   2020 Annual Meeting and Proxy Statement


Table of Contents

PROXY SUMMARYGRAPHIC

2019 Executive Compensation Highlights

​  Executive Compensation Program Features

Strong linkage between pay and performance and support by shareholders regarding our performance metrics, targets and goals as evidenced by 97.9% shareholder approval annually of our executive compensation



Total direct compensation ("TDC"), which is the sum of an officer's base salary, short-term incentive target and long-term incentive target, targeted at the median level by our Compensation Committee



​  


Annual incentive plan ("AIP") based on EPS, net sales and Operating Cash Flow ("OCF") targets to drive shareholder value in day-to-day decision making





Long-term incentive ("LTI") plan utilizing stock options and performance share units based upon return on invested capital ("ROIC") and sales consolidated annual growth rate ("CAGR") to ensure long-term profitable growth and alignment with shareholders' interests



​  


Usage of two comparator groups to ensure pay and performance are aligned, and enable us to attract and retain the best talent





Robust share ownership guidelines for all officers and directors



​  


All Change-in-Control ("CIC") agreements for our current officers contain double-trigger provisions requiring termination of the executive following a CIC before payments are made. These payments also will be reduced if they exceed excise tax threshold.





Strong incentive compensation recovery (clawback) and anti-hedging and anti-pledging policies



​  


Use of tally sheets, realizable pay analysis, performance metric difficulty analysis and similar tools to ensure our compensation programs remain linked to performance and consistent with Board expectations





Engagement with shareholders during the year regarding executive pay and performance issues



​  Executive Compensation Actions and Results

Reaffirmed West's compensation philosophy of pay-for-performance that aligns executives' incentive compensation with our performance and with stakeholder interests on both a short- and long-term basis without promoting excessive risk



Reviewed and reaffirmed the Company's compensation programs to ensure strong alignment and line of sight to our business objectives and assigned all Corporate Officers to the Corporate AIP pool to drive overall performance and alignment to our "One West" value



​  


Conducted broad independent review of the Company's overall executive compensation philosophy, program design and function to ensure alignment with and support of West's priorities and needs





Conducted formal: (1) pay-for-performance review of CEO compensation versus peers, and (2) realizable pay analysis, to assess whether Company performance and CEO realizable pay are aligned over a given period



​  


Our 2019 AIP for corporate executives paid at 123.8% based on performance levels of 107.2% for EPS, 103.0% for Net Sales and 111.2% for OCF





Our LTI plan Performance Share Units ("PSUs") for the 2017-19 period paid out at 82.61% based on 84.9% performance (6.88%) for CAGR and 94.3% performance for ROIC (12.63%)


2020 Annual Meeting and Proxy Statement   |   5


Table of Contents

GRAPHIC ELECTION OF DIRECTORS

Election of Directors

Director Nominations, Skills and Criteria

Candidates for nomination to our Board are recommended by the Nominating and Corporate Governance Committee ("NCGC") in accordance with the Committee's charter, our Amended and Restated Articles of Incorporation, our Bylaws and our Corporate Governance Principles. All persons recommended for nomination to our Board, regardless of the source of the recommendation, are evaluated by this Committee with the Board determining the final slate of nominees.

The Board and the NCGC consider, at a minimum, the following factors in recommending potential new Board members or the continued service of existing members:

When reviewing nominees, the NCGC considers whether the candidate possesses the qualifications, experience and skills it considers appropriate in the context of the Board's overall composition and needs. The NCGC also values diversity on the Board in the director nominee identification and nomination process.

To assist it with its evaluation of the director nominees for election at the 2020 Annual Meeting, the NCGC considered the factors listed above and used a skills matrix highlighting the experience of our directors in areas such as industry experience, international experience (including assignments overseas), global operations or supply chain leadership, financial literacy, and independence. We routinely evaluate the skills needed and have added skills relating to marketing (including e-commerce), mergers and acquisitions, regulatory and cyber/digital experience, in recent years.

The NCGC also reviews annually with the Board the size and composition of the Board and its committees to determine the qualifications and areas of expertise needed to further enhance the composition of the Board. In determining whether to add new directors, we review our skills matrix annually to determine the targeted skills that we believe will most significantly enhance the diversity of experience and expertise on our Board. We balance the current skill sets versus the desired optimal mix of skill sets given their relative importance to the Company.

West's mission is to improve patient lives by being the world leader in integrated containment and delivery of injectable medicines, which rests on our foundation values of: Passion for Customers, Leadership in Quality and One West Team. The pillars of our strategy are:

6   |   2020 Annual Meeting and Proxy Statement


Table of Contents

ELECTION OF DIRECTORSGRAPHIC

Board members are expected to oversee and support Management in driving success in our current strategic plans by focusing on following five imperatives that will enable us to prioritize and drive efforts across the strategic pillars:

Under the heading "Director Nominee Biographies," we provide an overview of each nominee's principal occupation, business experience and other directorships of publicly-traded companies, together with the qualifications, experience, key attributes and skills the Committee and the Board believe will best serve the interests of the Board, the Company and our shareholders.

Shareholders who wish to recommend or nominate director candidates must provide information about themselves and their candidates and comply with procedures and timelines contained in our Bylaws. These procedures are described under "2021 Shareholder Proposals or Nominations" in this Proxy Statement.

Board Commitment to Diversity and Inclusion

Board diversity and inclusion is critical to the success of West. The Board is committed to ensuring its membership has sufficient diversity of experience, skills and personal characteristics to support the long-term success of the Company. As presently constituted, the Board represents a deliberate mix of members who have a deep understanding of our business as well as members who have different skill sets and points of view. As noted above, our nomination process and our Board's approach to assessment and evaluation of our nominees support this diversity and inclusion commitment.

Our Corporate Governance Principles include a statement regarding the importance of Board diversity and inclusion to ensure that the director nomination process considers a diverse mix of background, age, gender, sexual orientation, as well as cultural and ethnic composition. Additionally, the NCGC's evaluation of director nominees includes consideration of their ability to contribute to the diversity of personal and professional experiences, opinions, perspectives and backgrounds on the Board. The Board continually assesses the size and the mix of experiences and backgrounds of the Board members, including the Board's gender, ethnic, and racial composition.

We are particularly proud of our leadership in female representation on the Board. Thirty percent of our independent directors (27% of all directors) are women. Several of our Board members participate in diversity in leadership programs and others are high-profile speakers on issues of diversity and inclusion.

Our Board has overseen efforts by the Company to increase diversity and inclusion among its employee base. Mr. Green's annual objectives include diversity and inclusion as a key metric, and we have also added new positions responsible for diversity. The Board believes this approach enables us to attract and retain diverse high-quality talent. This has culminated in a diversity mission statement contained in our CR Report which is available atwww.westpharma.com/about-west/corporate-responsibility. As part of our diversity mission, we have trained employees at all levels on the importance of diversity and inclusion, introduced affinity groups, accelerated efforts in minority recruiting and modified our culture to increase flexibility and mentoring, which we believe facilitates diversity and inclusion.

The Board has increased its oversight of Management in the area of creating an ethical and sustainable corporate culture, including periodic director education sessions that include culture and engagement topics. The Board firmly believes that it plays a key role in the oversight of West's culture and in holding Management accountable for the creation and stewardship of that culture. Additionally, the Board believes an engaged and empowered workforce contributes significantly to the creation of shareholder value.

2020 Annual Meeting and Proxy Statement   |   7


Table of Contents

GRAPHIC ELECTION OF DIRECTORS

Board Refreshment and Retirement Age

We review our Board refreshment practices and retirement age annually and continue to monitor broad governance trends in this area. The Board has considered but does not have term limits on the service of our directors, because it believes that term limits may lead to the loss of valuable director insight into our business and operations that is enhanced with continuity.

The Board believes that a diverse mix of long-tenured and new Board members provides a good and appropriate balance of experience to enhance shareholder value. The Board believes that directors provide meaningful, independent oversight and advice at any age. Our Corporate Governance Principles include a mandatory retirement age of 75. This means that a non-employee director must retire on the date of the Annual Meeting of Shareholders immediately following his or her 75th birthday.

An employee director must submit his or her resignation upon the date he or she ceases to be an executive officer of the Company.

Board Evaluation Process

Each year the Board and each of its committees review their performance during executive sessions. This review centers around questions directors are asked to contemplate regarding their individual performance and the performance of the Board/Committee. These questions include topics such as contributions made to Board deliberations, the relationship between members, quality of the materials provided, the relationship with Management, contributions to key functions/responsibilities of the Board, and topics that they would like to see added or deleted to meeting agendas.

Additionally, the NCGC assesses the evaluation process annually and adjusts the process when desirable improvements are identified. The NCGC reviews several matters, including the issues to focus on in the evaluation and the form and manner of assessment. The NCGC periodically re-assesses its position on self-evaluation.

Members of the NCGC reach out to each director individually to discuss performance and any concerns and relay them to the Board using an interview template approved by the NCGC. This process assists the full Board with obtaining different perspectives, encourages the collection of candid information and ensures a high level of engagement.

The Board believes this evaluation system, coupled with our strong Chair of the Board and open-door policy, which encourages sharing of ideas among all directors, makes for a robust process that ensures the Board's effectiveness.

8   |   2020 Annual Meeting and Proxy Statement


Table of Contents

DIRECTOR NOMINEE BIOGRAPHIESGRAPHIC

Proposal 1 — Election of Directors

Our shareholders are asked to consider 11 nominees for election to our Board to serve for a one-year term until the 2021 Annual Meeting of Shareholders, or until their successors, if any, are elected or appointed, or their earlier death, resignation, retirement, disqualification or removal. The names of the nominees for director, their current positions and offices, tenure as a Company director, their qualifications and other characteristics are set forth in the biographies below. The table below also lists each nominee's current Board committees.

All the nominees are current Company directors and all non-employee directors have been determined by our Board to be independent. Our NCGC reviewed the qualifications of each of the nominees, finding each nominee to possess the required attributes and all nominees collectively to strike the appropriate balance of diversity of knowledge, age, skills, expertise, gender and race, and recommended to our Board that each nominee be submitted to a vote of our shareholders at the Annual Meeting. The Board approved the Committee's recommendation at its meeting on February 18, 2020.

Each of the nominees has agreed to be named and to serve, and we expect each nominee to be able to serve if elected. If any nominee is unable to serve, the NCGC will recommend to our Board a replacement nominee. The Board may then designate the replacement nominee to stand for election. If you voted for the unavailable nominee, your vote will be cast for his or her replacement.

Director Nominee Biographies

Mark A. Buthman

GRAPHIC

Age: 59
Director since 2011

Committees:
Compensation
Finance
Nominating & Corp. Gov.

Mr. Buthman retired from Kimberly-Clark Corporation—a global producer of branded products for the consumer, professional and healthcare markets—in December 2015, where he was Executive Vice President and Chief Financial Officer from January 2003 to April 2015. During his 33-year career at Kimberly-Clark, Mr. Buthman held a wide range of leadership roles in finance, strategy and operations, and led or participated in more than 50 acquisitions during his tenure as Chief Financial Officer. Mr. Buthman is a Board member of IDEX Corporation and Vice Chair of the Board of Directors of Pavillon International.

Relevant Board Skills and Experience

Mr. Buthman possesses deep financial and accounting management experience, as well as experience in managing real estate, investor relations, information technology, finance and accounting shared services, and global procurement, from his time at Kimberly-Clark, a Fortune 150 company with significant international operations. He brings this expertise and counsel to the Board and serves on the Compensation, Finance, and Nominating and Corporate Governance Committees.

Other public company directorships in the last five years

IDEX Corporation

2020 Annual Meeting and Proxy Statement   |   9


Table of Contents

GRAPHIC DIRECTOR NOMINEE BIOGRAPHIES


William F. Feehery, Ph.D.

GRAPHIC

Age: 49
Director since 2012

Committees:
Audit
Compensation
Nominating & Corp. Gov. (Chair)

Dr. Feehery joined Certara as CEO and a member of Certara's board of directors beginning June 2019. Certara provides services and software that assist with the drug development lifecycle. Prior to becoming Certara's CEO, he was President of Industrial Biosciences at DowDuPont (previously, E. I. du Pont de Nemours and Company)—a provider of innovative products and services for markets including agriculture, biotechnology, nutrition, electronics, communications, safety and protection, home and construction, and transportation—since November 2013. He served as Global Business Director, DuPont Photovoltaic Solutions and previously as Global Business Director, Electronics Growth Businesses and as President of DuPont Displays, Inc. during his tenure at DuPont which began in 2002. Before joining DuPont, he was engaged in venture capital and was a management consultant for the Boston Consulting Group.

Relevant Board Skills and Experience

Dr. Feehery currently provides executive leadership as the CEO of a development services company. Dr. Feehery is the only independent member of our Board who currently serves as a CEO, experience we believe significantly enhances our Board capabilities. He also possesses extensive global public company leadership from his time at the DuPont organization, including the direct responsibility for business operations in over 20 countries and leading a global manufacturing business. In addition, Dr. Feehery has considerable technical experience, with a Ph.D. in chemical engineering and over 15 years of experience in the technology industry. He brings this corporate insight, and his technical background, to the Board by serving on three committees of the Board and Committee meetingschairing the Nominating and Corporate Governance Committee.

Public company directorships in the last five years

None

 

2017 Performance and Compensation Highlights

We believe that Mr. Green and the other named executive officers (“NEOs”) performed satisfactorily in 2017 compared to established goals and that their compensation is appropriate in relation to that performance.  Under their leadership, our Company achieved a total shareholder return (“TSR”) of 17.0% in 2017 and a cumulative three-year TSR of 89.3%.  Those returns reflect our growing sales and profitability.  Compared to 2016: net sales grew 5.2% (at constant currency exchange rates), gross profit increased 2.3%, and adjusted operating profit margin grew 20 basis points to 15.0%.  As discussed in our 2017 Annual Report, proprietary products sales growth was slower than in 2016, primarily due to customers working down inventory purchased in 2016, but contract manufacturing sales growth was still robust due primarily to the ramp-up of projects in the latter half of 2016.  Adjusted earnings per share (“Adjusted EPS”) as reported in our 2017 Earnings Release filed on February 15, 2018 (the “Earnings Release”), also improved 28% year-over-year, as described in footnote 3 below.



(1)       See page 23 of our 2017 Annual Report for discussion of the impact of foreign currency rates on reported net sales.

(2)       Gross profit and adjusted operating margin are discussed on page 24 and page 27, respectively, of our 2017 Annual Report.

(3)       A meaningful comparison on EPS growth for Annual Incentive Plan (“AIP”) purposes is best explained by reconciling the results used for calculating AIP payments to U.S. GAAP and the Earnings Release.  Please see below.

 

 

2017

 

2016

 

US GAAP Diluted EPS

 

$

1.99

 

$

1.91

 

Venezuela deconsolidation and currency devaluation

 

0.15

 

0.04

 

Tax law changes

 

0.64

 

0.01

 

Restructuring related charges

 

 

0.23

 

Pension curtailment gain

 

 

(0.01

)

Adjusted Diluted EPS per Earnings Release

 

$

2.78

 

$

2.18

 

Impact of foreign exchange rates

 

 

0.04

 

Tax benefit from stock-based compensation accounting change

 

(0.44

)

 

Share repurchase

 

(0.01

)

 

Adjusted Diluted EPS for AIP Purposes

 

$

2.33

 

$

2.22

 

The following table shows the components of 2017 compensation paid to our NEOs, including total “realizable” pay.  Realizable pay takes a retrospective look at pay and performance.  Realizable pay

Robert F. Friel

GRAPHIC

Age: 64
Director since 2020

Committees:
Audit
Finance

Mr. Friel is the former Chair, President and CEO of PerkinElmer, Inc. and a former member of PerkinElmer's board of directors. Mr. Friel recently retired as Chair and CEO of PerkinElmer, Inc., a global business dedicated to serving the diagnostics, life sciences, food and applied markets. He served in this role for more than ten years. During his 20-year career at PerkinElmer, Mr. Friel held roles of increasing responsibility that included Chief Operating Officer, President of the Life and Analytical Sciences Division and Chief Financial Officer. Prior to joining PerkinElmer, Mr. Friel served in several finance-focused senior management positions with AlliedSignal, Inc., now Honeywell International.

Relevant Board Skills and Experience

Mr. Friel's experience in the healthcare and scientific fields, as part of large, complex, and multinational organizations assists the Board in setting its growth strategy and overseeing operational and financial risks. His extensive experience serving as both the Chair and CEO of a global business focused on improving human health is well-aligned with West's mission and with the pharmaceutical and medical device customers we serve. In addition to the public board memberships listed below, Mr. Friel is a director of New York Life Insurance Company, one of the largest life insurers in the world. His service on this board and others, together with his in-depth finance and tax expertise, as well as his training and education in these fields, makes him a strong contributor to the Board and the two Committees on which he serves.

Public company directorships in the last five years

Nuvasive, Inc.
PerkinElmer, Inc. (through 2019)
Xylem Inc.

10   |   2020 Annual Meeting and Proxy Statement


sum of: (1) base salary paid; (2) annual incentive plan amounts actually earned for 2017 performance; (3) the in-the-money valueTable of stock option grants made in 2017; (4) the December 2017 estimate for payouts for the 2017 Performance Share Unit award (82.09% of target);Contents

DIRECTOR NOMINEE BIOGRAPHIESGRAPHIC


Eric M. Green

GRAPHIC

Age: 50
Director since 2015

Committees:
None

Mr. Green has been our President and CEO since April 2015 and a member of our Board of Directors since May 2015. Mr. Green is responsible for leading West's market-led business strategy, focused on tailoring our approach to the specific needs of Biologics, Generics, Pharmaceutical and Diagnostic customer groups. Prior to joining the Company, Mr. Green worked at Sigma-Aldrich Corporation—a leading life science and technology company focused on human health and safety—where he served as Executive Vice President and President of their Research Markets business unit since 2013. Mr. Green also serves as a member of Bethel University's Board of Trustees.

Relevant Board Skills and Experience

Mr. Green has significant public company experience having served as a corporate officer and member of the senior executive team of Sigma-Aldrich prior to joining the Company. Mr. Green had research and development responsibility and managed a $1.4 billion business unit—the largest at that company. Prior to serving in that role, he held key positions of increasing responsibility, including international sales and operations, corporate strategic planning and country management positions in the UK, Ireland and Canada. As West's President and CEO, Mr. Green is our only non-independent director, and, in addition to the aforementioned experience, brings insight to the Board as the Company's executive leader.

Public company directorships in the last five years

None


Thomas W. Hofmann

GRAPHIC

Age: 68
Director since 2007

Committees:
Audit (Chair)
Compensation

Mr. Hofmann retired from Sunoco, Inc.—a diversified energy company—in 2008, where he was Senior Vice President and CFO from January 2002 to December 2008. In that role, he was responsible for managing the accounting, auditing, investor relations and strategic planning, tax and treasury functions of the organization. He also chaired the Company's Capital Management Committee and served as the management liaison to the Audit Committee. Mr. Hofmann served Sunoco in various other senior management roles since joining in 1977. Mr. Hofmann serves on the boards of Fox Chase Cancer Center and Temple University Health System. He also serves on the President's Leadership Council of the University of Delaware and is a member of the advisory board for Drexel University's Center for Corporate Governance.

Relevant Board Skills and Experience

Mr. Hofmann possesses substantial financial, corporate governance and management experience with a global, publicly-traded company. He is well-versed in strategic planning, risk-management and capital-market issues, including acquisitions and divestitures. He brings this comprehensive financial background to his role on the Board, as Chair of the Audit Committee and as a member of the Compensation Committee.

Public company directorships in the last five years

Northern Tier Energy GP LLC (through May 2016)
Columbia Pipeline Partners LP (through February 2017)

2020 Annual Meeting and (5) the 2017 year-end value of any time-vesting restricted stock or restricted stock units (“RSUs”) granted in 2017.  The table is not a substitute for our 2017 Summary Compensation Table set forth on page 45.

Proxy Statement   2017 Summary Compensation and Realizable Pay|

(all amounts in U.S. Dollars)

Name and
Principal Position

 

Salary

 

Stock 
Awards

 

Option 
Awards

 

Non-Equity 
Incentive Plan 
Compensation

 

Change in Pension 
Value & Nonqualified
Deferred 
Compensation 
Earnings

 

All Other 
Compensation

 

SEC 
Total

 

SEC Total 
Without 
Change in 
Pension (1)

 

Total 
Realizable 
Pay

 

Eric M. Green
President & CEO

 

824,038

 

1,526,814

 

1,500,071

 

748,808

 

95,660

 

61,172

 

4,756,563

 

4,660,903

 

4,344,181

 

William J. Federici
Sr. VP, CFO & Treasurer

 

535,462

 

349,990

 

350,045

 

340,424

 

270,150

 

31,333

 

1,877,404

 

1,607,254

 

1,515,445

 

Karen A. Flynn
Sr. VP & CCO

 

469,615

 

500,069

 

499,952

 

281,904

 

112,801

 

38,306

 

1,902,647

 

1,789,846

 

1,665,161

 

George L. Miller
Sr. VP, GC & Corp. Secretary

 

409,808

 

356,496

 

300,029

 

226,320

 

47,280

 

27,753

 

1,367,686

 

1,320,406

 

1,248,448

 

David A. Montecalvo
Sr. VP, Global Ops & Supply Chain

 

377,846

 

202,251

 

199,923

 

166,399

 

27,403

 

140,522

 

1,114,344

 

1,086,941

 

912,169

 


(1)This column is each officer’s total compensation, as determined under applicable Securities and Exchange Commission (“SEC”) rules, minus the change in pension value reported in the Change in Pension Value and Nonqualified Deferred Compensation Earnings column of the Summary Compensation Table.  It shows the impact that change in pension values had on total compensation, as determined under applicable SEC rules, which vary substantially due to actuarial calculations.  The amounts reported in the SEC Total Without Change in Pension column may differ substantially from the amounts reported in the Total column of the Summary Compensation Table required under SEC rules and are not a substitute for total compensation as described above and in the 2017 Summary Compensation Table on page 45.   11


Key 2017 Compensation-Related Actions

·                                Reaffirmed compensation philosophy to target our executive compensation at the median (50th percentile) of comparator group companies.

·                                Further refined the Company’s AIP, including: (1) providing that all metrics except revenue would be based on actual foreign-exchange rates rather than budgeted rates; (2) consolidation of our Innovation and Technology and Commercial functional plans to drive focus on sales; (3) providing additional guidelines for managers to adjust bonuses for non-officers based on individual performance; and (4) providing that a prorated bonus would be paid in the event of an involuntary termination due to job elimination or redundancy.

·                                Updated the change-in-control (“CIC”) agreements for a majority of our officers (including three of our five NEOs) to bring them more in line with market practices and to further ensure focus on creating and maintaining shareholder value in the event of a proposed change-in-control.

·                                Reaffirmed the use of two comparator groups and determined that no changes were necessary given the significant update and changes made in 2016.

·                                Conducted formal: (1) pay-for-performance review of CEO compensation versus peers; and (2) realizable pay analysis to assess whether Company performance and CEO realizable pay are aligned over a given period.

AuditorsTable of Contents

GRAPHIC DIRECTOR NOMINEE BIOGRAPHIES

 

Paula A. Johnson, M.D., MPH

GRAPHIC

Age: 60
Director since 2005

Committees:
Innovation & Technology
Nominating & Corp. Gov.

Dr. Johnson has been President of Wellesley College since July 2016. Before joining Wellesley, Dr. Johnson founded and served, beginning in 2002, as the inaugural Executive Director of the Connors Center for Women's Health and Gender Biology, as well as Chief of the Division of Women's Health at Brigham and Women's Hospital. A cardiologist, Dr. Johnson was the Grace A. Young Family Professor of Medicine in the Field of Women's Health—an endowed professorship named in honor of her mother—at Harvard Medical School. She was also Professor of Epidemiology at the Harvard T.H. Chan School of Public Health. Dr. Johnson is the recipient of many awards recognizing her contributions to women's and minority health and is featured as a national leader in medicine by the National Library of Medicine and is a member of the National Academy of Medicine and the American Academy of Arts and Sciences.

Relevant Board Skills and Experience

Dr. Johnson brings a wealth of leading healthcare expertise to our Board. She is a nationally recognized expert in cardiology and women's and minority healthcare issues. In her role as Executive Director of the Connors Center for Women's Health and Gender Biology and as Chief of the Division of Women's Health at Brigham and Women's Hospital, and a Professor of Medicine at Harvard Medical School and Professor of Epidemiology at the Harvard T.H. Chan School of Public Health, Dr. Johnson built a novel, interdisciplinary research, education, clinical and policy program in women's health whose mission is to improve the health of women and to transform their medical care. She has an extensive background in quality and safety in healthcare and in public health systems. She is a member of our Innovation and Technology and Nominating and Corporate Governance Committees.

Public company directorships in the last five years

Eaton Vance Corporation

Set forth below is summary information with respect to PwC’s fees for services provided in

Deborah L. V. Keller

GRAPHIC

Age: 57
Director since 2017

Committees:
Audit
Finance
Innovation & Technology

Ms. Keller serves as a Principal at Black Frame Advisors, LLC, having recently retired as CEO of Covance Drug Development—a business segment of Laboratory Corporation of America Holdings. Prior to serving as CEO, Ms. Keller spent more than 28 years at Covance in several leadership roles, including Corporate Executive Vice President and Group President of Research and Development Laboratories, Corporate Senior Vice President and President of Discovery and Translational Services, and Vice President of Analytical Services in Europe. She is a trustee of the Wisconsin Alumni Research Foundation, Operating Partner of HealthCloud Capital Fund and serves on the Dean's Advisory Board for the University of Wisconsin School of Business, where she is also an adjunct professor. Ms. Keller was named one of FierceBiotech's 10 Top Women in Biotech in 2012.

Relevant Board Skills and Experience

Ms. Keller possesses substantial global public company management experience from her time at Covance. After several positions of increasing responsibility in Quality Assurance, Marketing, and Scientific Operations, she also led Covance's European chemistry business, and the Central Laboratories Services business unit, the world's largest provider of laboratory services for clinical trials. She brings her corporate management expertise in the life sciences industry to her role on the Board, serving on the Audit, Finance and Innovation and Technology Committees.

Public company directorships in the last five years

None

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Table of Contents

DIRECTOR NOMINEE BIOGRAPHIESGRAPHIC

 

Type of Fees

 

2017

 

2016

 

 

 

 

 

 

 

Audit Fees

 

$

2,127,000

 

$

1,935,280

 

Audit-Related Fees

 

196,799

 

1,500

 

Tax Fees

 

150,404

 

224,014

 

All Other Fees

 

9,500

 

8,600

 

Total

 

$

2,483,703

 

$

2,169,394

 

Myla P. Lai-Goldman, M.D.

GRAPHIC

Age: 62
Director since 2014

Committees:
Finance
Innovation & Technology (Chair)

Dr. Lai-Goldman is the Executive Chair of GeneCentric Therapeutics, Inc.—a precision medicine company—where she previously served as CEO and President since June 2011. She is also managing partner of Personalized Science, LLC, a clinical diagnostic consulting company that she founded in 2008. Previously, Dr. Lai-Goldman was CEO and Chief Scientific Officer of CancerGuide Diagnostics,  Inc. Before joining CancerGuide Diagnostics, she held various roles including Executive Vice President, Chief Medical Officer and Chief Scientific Officer—at Laboratory Corporation of America Holdings (LabCorp) and its predecessor company, Roche Biomedical Laboratories, Inc. Additionally, Dr. Lai-Goldman has been a venture partner at Hatteras Venture Partners since August 2011. Dr. Lai-Goldman is Board-certified in anatomic and clinical pathology.

Relevant Board Skills and Experience

Dr. Lai-Goldman is a recognized author and speaker on clinical diagnostics and has substantial leadership experience at companies like those that our Company serves. Dr. Lai-Goldman spent more than 18 years at LabCorp where she served on LabCorp's Executive and Management Committees, with strategic and operations responsibilities for three major genomic laboratories comprising more than 700 people. During her tenure at LabCorp, she led all clinical, scientific and medical activities, including the introduction of more than 400 clinical assays. Her experience includes the development of partnerships, licensing and acquisitions. She brings her unique perspective as both a physician, researcher and corporate executive to the Board as Chair of the Innovation and Technology Committee and as a member of the Finance Committee.

Other public company directorships in the last five years

Sequenom, Inc.


Douglas A. Michels

GRAPHIC

Age: 63
Director since 2011

Committees:
Audit
Compensation (Chair)

Mr. Michels retired from OraSure Technologies, Inc.—a leader in the development, manufacture and distribution of oral fluid diagnostic and collection devices and other technologies designed to detect or diagnose critical medical conditions—in March 2018, after serving as President and CEO, as well as a member of the Board of Directors, since June 2004. Prior to joining OraSure, Mr. Michels served as Group Vice President, Global Marketing of Ortho-Clinical Diagnostics, President of Ortho-Clinical Diagnostics International, and President of Johnson & Johnson Healthcare Systems, Inc. In February 2010, Mr. Michels was appointed to the Presidential Advisory Council on HIV/AIDS. He previously served on the Board of the National Blood Foundation, the Board of the National Committee for Quality Health Care and the Coalition to Protect America's Health Care. He now serves on the boards of Tyme Technologies Inc. and St. Luke's University Health Network.

Relevant Board Skills and Experience

Mr. Michels possesses considerable expertise and executive leadership skills in the pharmaceutical, medical device and diagnostic industry, having spent 13 years with OraSure Technologies, Inc. During his tenure, OraSure developed the nation's first FDA-approved over-the-counter home rapid HIV self-test and the first and only FDA-approved rapid hepatitis C test. Mr. Michels brings his in-depth corporate leadership perspective to his role as Chair of the Compensation Committee, and his experience as a former CEO of a public company to his role on the Audit Committee.

Other public company directorships in the last five years

Tyme Technologies Inc.
OraSure Technologies, Inc. (through March 2018)

2020 Annual Meeting and Proxy Statement   |   13


Table of Contents

GRAPHIC DIRECTOR NOMINEE BIOGRAPHIES


Paolo Pucci

GRAPHIC

Age: 58
Director since 2016

Committees:
Finance (Chair)
Innovation & Technology

Mr. Pucci is the recently retired CEO and a former member of the Board of Directors of ArQule, Inc.—a biopharmaceutical company engaged in the research and development of targeted therapeutics. Merck & Co. completed its acquisition of ArQule in January 2020, resulting in Mr. Pucci's retirement. Before joining ArQule in 2008, Mr. Pucci worked at Bayer A.G., where he served in several leadership capacities including Senior Vice President of the Global Specialty Medicine Business Unit and was a member of the Bayer Pharmaceuticals Global Management Committee. Before Bayer, Mr. Pucci held positions of increasing responsibility with Eli Lilly and Company, culminating with his appointment as Managing Director, Eli Lilly Sweden AB.

Relevant Board Skills and Experience

Mr. Pucci possesses a wealth of knowledge regarding biopharmaceutical markets from his experience as an executive leader of several large biopharmaceutical companies. Mr. Pucci's service as a public company CEO through the beginning of 2020 brings an experience we believe is important in terms of Board diversity. His international background also adds to the diverse knowledge base of our Board. Mr. Pucci's expertise in new drug development, his executive experience working for large multinationals and his non-U.S. training are valuable additions to our Board, and to his roles as Chair of the Finance Committee and a member of the Innovation and Technology Committee.

Other public company directorships in the last five years

ArQule Inc. (through January 2020)
NewLink Genetics Inc. (through October 2018)
Dyax Inc. (through 2016)


Patrick J. Zenner

GRAPHIC

Age: 73
Director since 2002
Chair since 2015

Committees:
Nominating & Corp. Gov.

Mr. Zenner was first elected Chair of the Board effective July 1, 2015. He retired from Hoffmann-La Roche Inc., North America—the prescription drug unit of the Roche Group, a leading research-based healthcare enterprise—in 2001, where he served as President and CEO from 1993 to 2001. He served as Interim CEO of CuraGen Corporation from May 2005 through March 2006. Since then, Mr. Zenner was a director and Chair of the Board of Exact Sciences Corporation until July 2010 and served as its Interim CEO from July 2007 to March 2008. Mr. Zenner served as Chair of the Board of ArQule, Inc. until its acquisition in January 2020, and he also serves as a director of Selecta Biosciences, Inc. Mr. Zenner is currently a member of the Board of Trustees of Creighton University and is Chair of the Board of Trustees of Fairleigh Dickinson University.

Relevant Board Skills and Experience

Mr. Zenner possesses more than 40 years of experience and expertise in the pharmaceutical industry. Since retiring from Hoffmann-La Roche, Mr. Zenner has devoted his considerable industry expertise and corporate governance knowledge to small and early-stage pharmaceutical and technology companies in various capacities, including board member, chair and interim CEO.

As the lead independent director for West, Mr. Zenner has served in several leadership roles, including membership on each of the Company's board committees. He organized and led the search for West's new CEO in 2015. He also oversaw the development and implementation of a robust enterprise risk management process at West and led the development of a comprehensive director education program. The continuity of his membership and length of service on the Board is a valuable asset, particularly considering changes to executive management members, changes to our enterprise strategic plan and additions of new Board members over the past several years.

Other public company directorships in the last five years

ArQule, Inc. (through January 2020)
Selecta Biosciences, Inc.

The Board unanimously recommends a vote FOR the election of each of these nominees as directors.

14   |   2020 Annual Meeting and Proxy Statement


General Information About the Meeting

Table of Contents

BOARD AND DIRECTOR INFORMATION AND POLICIESGRAPHIC

Proxy Solicitation

Board and Director Information and Policies

Our Board of Directorsstructure reflects our Corporate Governance Principles and commitment to good governance. The Board believes the governance structure we have created between the Board, its Committees, the Board Chair, the CEO and Management, is soliciting your vote on matters that will be presented at our 2018 Annual Meeting of Shareholders and at any adjournment or postponement.  This Proxy Statement contains information on these matters to assist you in voting your shares.

The Notice,supporting the accompanying proxy card or voting instruction card and our 2017 Annual Report, including our annual report wrapper, are being mailed starting on or about March 21, 2018.

Shareholders Entitled to Vote

All shareholders of record of our common stock, par value $.25 per share, at the close of business on March 6, 2018, are entitled to receive the Notice and to vote their shares at the meeting.

As of that date, 73,951,222 shares of our common stock were outstanding.  Each share is entitled to one vote on each matter properly brought to the meeting.

How You Can Vote

If you are a registered shareholder, you may vote at the Annual Meeting by delivering a proxy card in person or you may cast your vote in any of the following ways:

·            Logging on to www.ProxyVote.com.

·            Mailing your signed proxy card or voting instruction card to the address provided.

·            Calling toll-free from the United States, U.S. territories and Canada to 1-800-690-6903.

If you hold shares of the Company in “Street name,” please follow the voting instructions of the financial institution at which you have an account holding sharessustainable growth of the Company.

Deadline for Voting.  Mailed proxy and voting instruction cards must be received before the meeting.  If you are a registered shareholder and attend the meeting, you may deliver your completed proxy card in person.  “Street name” shareholders who wish to vote at the meeting will need to obtain a proxy form from the institution that holds their shares. The deadline for voting by telephone or Internet is 11:59 PM Eastern Time on April 30, 2018.

How Your Shares Will Be Voted

In each case, for registered shareholders, your shares will be voted as you instruct.  If you return a signed card, but do not provide voting instructions, your shares will be voted FOR each of the proposals. You may revoke or change your vote any time before the proxy is exercised by filing withDuring 2019, our Corporate Secretary a notice of revocation or a duly executed proxy bearing a later date.  You may also vote in person at the meeting, although attendance at the meeting will not by itself revoke a previously granted proxy.  If you hold shares in the Company in “Street name” or through a broker, please refer to “Broker Voting and Votes Required” below.

Plan Participants.  Any shares you may hold in the West Pharmaceutical Services, Inc. 401(k) Plan or the West Contract Manufacturing Savings and Retirement Plan have been added to your other holdings on your proxy card.

Your completed proxy card serves as voting instructions to the trustee of those plans.  You may direct the trustee how to vote your plan shares by submitting your proxy vote for those shares, along with the rest of your shares, by Internet, phone or mail, all as described on the enclosed proxy card.

If you do not instruct the trustee how to vote, your plan shares will be voted by the trustee in the same proportion that it votes shares in other plan accounts for which it received timely voting instructions.

Broker Voting and Votes Required

If your shares are held in a stock brokerage account or by a bank or other holder of record, you are considered the “beneficial owner” of shares held in “Street name.”  The Notice would have been made available to you by your broker, bank or other holder of record who is considered the shareholder of record of those shares.  As the beneficial owner, you may direct your broker, bank or other holder of record on how to vote your shares by using the proxy card included in the materials made available to you or by following their instructions for voting on the Internet. A broker non-vote occurs when a broker or other nominee that holds shares for another does not vote on a particular item because the nominee does not have discretionary voting authority for that item and has not received instructions from the owner of the shares.  Although there is no controlling precedent under Pennsylvania law regarding the treatment of broker non-votes in certain circumstances, we intend to apply the principles outlined in the table below:

Proposal

Votes Required

Treatment of Abstentions
and Broker Non-Votes

Broker
Discretionary
Voting

Proposal 1 - Election of Directors

As this is an uncontested election, the number of votes for a director must exceed the number of votes against a director

Abstentions and broker non-votes will not be taken into account in determining the outcome of the proposal

No

Proposal 2 - Advisory Vote to Approve Named Executive Officer Compensation

Majority of the shares present and entitled to vote on the proposal in person or represented by proxy

Abstentions will have the effect of negative votes and broker non-votes will not be taken into account in determining the outcome of the proposal

No

Proposal 3 - Ratification of the Appointment of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for 2018

Majority of the shares present and entitled to vote on the proposal in person or represented by proxy

Abstentions and broker non-votes will have the effect of negative votes

Yes

Proxy Solicitation.  We have not retained a proxy solicitation company with respect to the proxy being solicited by this Proxy Statement.

Quorum

We must have a quorum to conduct business at the 2018 Annual Meeting.  A quorum consists of the presence at the meeting either in person or represented by proxy of the holders of a majority of the outstanding shares of our common stock entitled to vote.  For the purpose of establishing a quorum, abstentions, including brokers holding customers’ shares of record who cause abstentions to be recorded at the meeting, and broker non-votes are considered shareholders who are present and entitled to vote, and count toward the quorum.

Mailings to Multiple Shareholders at the Same Address

We have adopted a procedure called “householding” for making the Proxy Statement and the 2017 Annual Report available.  Householding means that shareholders who share the same last name and address will receive only one copy of the materials, unless we are notified that one or more of these shareholders wishes to continue receiving additional copies.

We will continue to make a proxy card available to each shareholder of record.  If you prefer to receive multiple copies of the proxy materials at the same address, please contact us in writing or by telephone: Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341, (610) 594-3319.

Electronic Availability of Proxy Statement and Annual Report

We are pleased to be distributing our proxy materials to certain shareholders via the Internet under the “notice and access” approach permitted by the rules of the SEC.  This method conserves natural resources and reduces our costs of printing and mailing while providing a convenient way for shareholders to review our materials and vote their shares.

On March 21, 2018, we mailed a “Notice of Internet Availability” to participating shareholders, which contains instructions on how to access the proxy materials on the Internet.

If you would like to receive a printed copy of our proxy materials, we will send you one free of charge.  Instructions for requesting such materials are included in the Notice.

This Proxy Statement and our 2017 Annual Report are available at:

http://investor.westpharma.com/phoenix.zhtml?c=118197&p=irol-reportsannual.

Corporate Governance and Board Matters

During 2017, ourfull Board met six times. Each directorAll Board members attended at least 75%all Board meetings, all but two directors attended all the Board and their assigned Committee meetings, and these two members each attended more than 88% of the combined total of meetings in 2019. Our Board is committed to ensuring that directors attend meetings and that the meetingsBoard and its Committees devote sufficient time necessary for the effective oversight of the Company and its Management. Additionally, annually during the performance review process, the Board committees onassesses the time commitments for our Board against the time commitments of each member's outside positions to ensure there is sufficient time to devote to their duties as a West director.

Our Board also holds regular executive sessions of only independent directors to review, among other things, the Company's strategy and Management's operating plans, the criteria by which he or she served.  our CEO and other senior executives are measured, Management's performance against those criteria and other related issues and to conduct a self-assessment of its performance. Last year, our independent directors held five executive sessions.

All continuing directors, other than Mr. Friel, who was appointed in 2020, attended the 2019 Annual Meeting and all directors that are standing for election in 2020 are expected to attend the 2018 Annual Meeting, and all our directors attended the 20172020 Annual Meeting.

Our principal governance documents are our Corporate Governance Principles, Board Committee Charters, director qualification standards and Code of Business Conduct.  Aspects of our governance documents are summarized below.  We encourage our shareholders to read our governance documents, as they present a comprehensive picture of how the Board addresses its governance responsibilities to ensure our vitality and success.  The documents are available in the “Investors Corporate Governance” section of our website at www.westpharma.com and copies of these documents may be requested by writing to our Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341.

Corporate Governance Principles

Our Board has adopted Corporate Governance Principles to provide guidance to our Board and its committees on their respective roles, director qualifications and responsibilities, Board and committee composition, organization and leadership.  Our Nominating and Corporate Governance Committee reviewed and significantly updated our Corporate Governance Principles to meet best practices in corporate governance in 2016 and, in 2017, the Committee confirmed that the Corporate Governance Principles address our current and long-term business needs.  The only change made after this review was to increase our mandatory retirement age from 72 to 75, which is discussed in more detail below.  Our Corporate Governance Principles address, among other things:

·                  Statements of the Board’s commitment to high ethical standards, principles of fair dealing and high ethical standards;

·                  The requirement to hold separate executive sessions of the independent directors;

·                  The importance of robust executive succession planning and the role of directors in succession planning;

·                  The Board’s policy on setting director

CORPORATE GOVERNANCE AND BOARD MATTERS

compensation and director share-ownership guidelines;

·                  Guidelines on Board organization and leadership, including the number and structure of committees and qualifications of committee members;

·                  Guidelines on outside board memberships;

·                  Policies on making charitable contributions and prohibition of political contributions;

·                  Policies on access to Management;

·                  Requirements fostering leadership development by senior executives;

·                  Statements of our executive compensation philosophy and our independent auditor standards;

·                  Director orientation and education; and

·                  Self-assessments of Board and Committee performance to determine their effectiveness.

Code of Business Conduct

All our employees, officers and directors are required to comply with our Code of Business Conduct as a condition of employment.  The Code of Business Conduct covers fundamental ethical and compliance-related principles and practices such as accurate accounting records and financial reporting, avoiding conflicts of interest, protection and proper use of our property and information and compliance with legal and regulatory requirements.  The Board has adopted a comprehensive Compliance and Ethics Program, which was substantially updated in 2016, and was reviewed and reaffirmed in 2017 as meeting the needs of our Company, its shareholders and other stakeholders.  Mr. Miller is our Chief Compliance Officer.  Mr. Miller delivers regular reports on program developments and initiatives to the Audit Committee and the Board.

Board Leadership Structure

Board Leadership Structure

The current governance structure of the Board follows:

While the offices of ChairmanChair and CEO are currently separate, the Board takes a flexible approach to the issue of whether the offices of ChairmanChair and CEO should be separate or combined. This approach allows the Board to regularly evaluate whether it is in the best interests of the Company for the CEO or another director to hold the position of Chairman.Chair.

The Board does not currently have a lead independent director, although the Board believes it may be useful and appropriate to designate a lead independent director if the offices of ChairmanChair and CEO are combined in the future.

We believeThe Board believes that the current Board leadership structure is appropriate now because it allows the ChairmanChair to focus on corporate governance and management of the BoardBoard's priorities and allows the CEO to focus directly on managing our operations and growing the Company.

Chairman of the Board of Directors

Chair of the Board of Directors

The responsibilities of the ChairmanChair include:

Each independent director may add items to the agenda.  Independent directors meet in regularly scheduled executive sessions

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Our current Chairman,Chair, Mr. Zenner, has been serving on the Board since 2002, and as our ChairmanChair since 2015. Each year the Board considers the role of the ChairmanChair and who is sitting in that role. We believe Mr. Zenner’sZenner's experience as a top executive hisplus independence plus hisand history with the Company makes him a valuable asset for the Company, and he provides significant leadership and perspective to our Board.

We believe continuing his Chairmanship has been beneficial to Management and enhanced shareholder value especially in light of the appointment of four new board members since 2014, and significant changes in our corporate officers since 2015, with a new CEO and new leaders in Global Operations and Supply Chain, Legal, Human Resources, Corporate Development, Strategy and Investor Relations, and Innovation and Technology.

Committees

Committees

The Board has five standing committees:

From time to time, the Board may form ad hoc committees to address specific situations as they may arise. Each committee consists solely of independent directors. All directors may attend any committee meeting, even if he or she is not a member. Our Board Chair and our CEO attend all Board meetings and attend virtually all Committee meetings, unless there is a scheduling conflict. Each standing committee has a written charter, which is posted in the"Investors—Corporate Governance”Governance" section of our website atwww.westpharma.com.

You may also request a copy of each committee’scommittee's charter from our Corporate Secretary. Below we set forth the current members of each Committee (as of the date of this Proxy Statement) and its core functions.

Audit Committee

Audit Committee

Mark A. ButhmanThomas W. Hofmann (Chair)
William F. Feehery
Robert F. Friel
Deborah L. V. Keller
Douglas A. Michels

Thomas W. Hofmann
Paolo Pucci

The Audit Committee assists our Board in its oversight of: (1) the integrity of our financial statements; (2) the independence and qualifications of our independent auditors; (3) the performance of our internal audit function and independent auditors; and (4) our compliance with legal and regulatory requirements. In carrying out these responsibilities, the Audit Committee, among other things:

·Reviews and discusses our annual and quarterly financial statements with Management and the independent auditors;auditors

·Manages our relationship with the independent auditors, including having sole authority for their appointment, retention and compensation; reviewing the scope of their work; approving non-audit and audit services; and confirming their independence; andindependence

·Oversees Management’sManagement's implementation and maintenance of disclosure controls and procedures and internal control over financial reporting.reporting

Regularly meets with our Chief Financial Officer, internal auditors, Corporate Controller, Chief Digital and Transformation Officer, Senior Director of Cybersecurity and Chief Compliance Officer to assess financial and cyber risks

The Board has affirmatively determined that Mr. ButhmanHofmann and Mr. HofmannFriel are each an “Auditboth "Audit Committee financial expert”Financial Experts" as defined in SEC regulations. The past Chair of the Audit Committee, Mr. Buthman, also remains an Audit Committee Financial Expert. In 2017,2019, the Audit Committee met seveneight times. All members of the Audit Committee are independent as defined in the listing standards of the New York Stock Exchange (“NYSE”("NYSE") and the Company’sCompany's Corporate Governance Principles.

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Compensation Committee

Compensation Committee

��

Douglas A. Michels (Chair)
Mark A. Buthman
William F. Feehery
Thomas W. Hofmann

Paolo Pucci
John H. Weiland

The Compensation Committee develops our overall compensation philosophy, and determines and approves our executive compensation programs, makes all decisions about the compensation of our executive officers, reviews our talent management and succession planning for key positions and oversees our cash and equity-based incentive compensation plans.

Additional information about the roles and responsibilities of the Compensation Committee can be found under the heading “Compensation"Compensation Discussion and Analysis." In 2017,2019, the Compensation Committee met foursix times. All members of the Compensation Committee are independent as defined in the listing standards of the NYSE and the Company’sCompany's Corporate Governance Principles.

Finance Committee

Finance Committee

John H. WeilandPaolo Pucci (Chair)
Thomas W. HofmannMark A. Buthman
Robert F. Friel
Deborah L. V. Keller

Myla P. Lai-Goldman

The Finance Committee reviews proposals made by Management and recommends to the full Board an optimal capital structure of the Company and adjustments andto the way capital is allocated and deployed by the Company. The Finance Committee analyzes and makes recommendations to the full Board with respect to potential opportunities for business combinations, acquisitions, mergers, dispositions, divestitures and similar strategic transactions involving the Company. The Finance Committee also ensures allevaluates the alignment of proposed strategic transactions are in alignment with the Company’sCompany's strategic business plan and oversees the process of reviewing, negotiating, consummating and/orand integrating potential strategic transactions. In 2017,2019, the Finance Committee met seven times.eight times, including several meetings to assess potential acquisition targets. All members of the Finance Committee are independent as defined in the listing standards of the NYSE and the Company’sCompany's Corporate Governance Principles.

Innovation and Technology Committee

Myla P. Lai-Goldman (Chair)
Paula A. Johnson (Chair)

Deborah L. V. Keller
Paolo Pucci

Myla P. Lai-Goldman
Douglas A. Michels

The Innovation and Technology Committee provides guidance to our Board on technicalthe Company's product, service and commercial innovation strategies,technology portfolio and its effects on the Company's growth, performance and competitive position. This Committee also reviews, evaluates and makes recommendations related to the Company's research and development programs and initiatives and their alignment with the Company's overall strategy, including the assessment of emerging gaps or opportunities identified by Management, and assists the Company in reviewing emerging science and technology trends that may affect our business, reviews our major innovation and technological programs and overall patent strategies, and assists ourin helping the Board in makingmake well-informed choices about investments in new technology. Lastly, this Committee reviews the Company's intellectual property portfolio and strategy. In 2017,2019, the Innovation and Technology Committee met threefour times.

Nominating and Corporate Governance Committee

William F. Feehery (Chair)
Mark A. Buthman

Paula A. Johnson
Patrick J. Zenner

The Nominating and Corporate Governance Committee identifies qualified individuals to serve as board members; recommends nominees for director and officer positions; reviews our commitment to diversity; determines the appropriate size and composition of our Board and its committees; monitors a process to assess Board effectiveness; reviews related-party transactions; and considers matters of corporate governance. The Committee also reviews and makes recommendations to the Board regarding compensation for non-employee directors and administers director equity-based compensation plans. In 2017,2019, the Nominating and Corporate Governance Committee met threefive times. All members of the Committee are independent as defined in the listing standards of the NYSE and the Company’sCompany's Corporate Governance Principles.

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The Board's Role in Risk Oversight

Board Matters

During 2017, ourThe Board and each of its Committees played pivotal roles in helping to develop and approve our corporate strategy.  The major issues debated and decided by the Board during 2017 included:

·            Actively updating our enterprise strategic plan and monitoring progress, including through our Finance Committee, which had its first full year of meetings during 2017;

·            Conducting a significant talent and succession planning review for key positions with Management asplay an integral part of our annual enterprise strategic planning meeting;

·            Reviewing potential targets for mergers and acquisitions and potential licensing opportunities and improving our merger and acquisition evaluation process;

·            Strengthening our enterprise risk management (“ERM”) process, including significant review of cybersecurity risks, protections and recovery plans;

·            Publishing our inaugural Corporate Responsibility report, which outlines our initiatives in five areas critical to our culture and success: Compliance and Ethics, Philanthropy, Diversity, Health and Safety and Environmental Sustainability;

·            Revising the director mandatory retirement age in our Corporate Governance Principles;

·            Adding a new female director with a healthcare background; and

·            Reviewing the Company’s capital allocation strategy, increasing the annual dividend and continuing our strategic share buyback program.

The Board’s Role in Risk Oversight

The Board’sactive role in risk oversight is consistent with our leadership structure, with Management havingoverseeing Management's day-to-day responsibility for assessing and managing our risk exposure and the Board actively overseeing management of our risks—both at the Board and committee level.

exposure.

The Board regularly reviews and monitors the risks associated with our enterprise strategy, financial condition and operations and specifically reviews the enterprise risks associated with our five-year plan. In particular, the Board reviews our risk portfolio, confirms that Management has established risk-management processes that are functioning effectively and efficiently and are consistent with our corporate strategy, reviews the most significant risks and determines whether Management is responding appropriately.

The Board performs its risk oversight role by using several different levels of review. Each Board meeting begins with a strategican overview by the CEO that describes the most significant issues, including risks, affecting the Company and includesas well as business updates from each reportable segment. In addition, the Board reviews in detail the business and operations of each reportable business segment quarterly, including the primary risks associated with that segment.

During 2017, with Board oversight and review, we substantially enhanced our ERM process.  This expanded ERM processOur Enterprise Risk Management ("ERM") program helps us reduce and manage the riskrisks inherent in our business, gainby gaining a greater understanding and awareness of risks facing the business, ensure risk-appropriate mitigation efforts are in place and regularly monitoredmonitors and ensureensures the Company meets or exceeds the expectation of all stakeholders, including investors and regulators.

The ERM program includes a Risk Identification and Management ("RIM") process, crisis management, business continuity and disaster recovery elements. Additionally, during 2019 West created a new senior position responsible for the ERM process and corporate security. This role provides strategic leadership and direction to our enterprise risk management programs and processes, incorporating our corporate values, Code of Business Conduct and health, safety and environmental policies.

The Board focuses on the overall risks affecting the Company. For example, theEach Board and each committee assesses cybersecurity risks and Management’s plan for defending against and responding to these risks.  Additionally, each committeeCommittee has been delegated the responsibility for the oversight of specific risks that fall within its areas of responsibility, which wereas cataloged through our ERMthe RIM process, including:

Although each Committee is responsible for evaluating certain risks and overseeing the management of those risks, the full Board is regularly informed about those risks through committeeregular Committee reports.

Cybersecurity.    The Audit Committee oversees the vital work necessary to understand our cybersecurity risk and the related risk mitigation activities, including an assessment of the strength of our defenses and processes. The full Board receives regular updates from the Audit Committee and key employees responsible for cybersecurity. The criticality of this work increased with our 2018 launch of an e-commerce website and due to the expansion of privacy regulations in Europe and elsewhere. The Audit Committee reviews cybersecurity risk at every live meeting, holds private sessions with our Chief Digital and Transformation Officer and reviews our Cybersecurity dashboard at all in-person meetings. Additionally, our Senior Director, Infrastructure and Cybersecurity, Senior Director, Internal Audit, and Chief Compliance Officer separately meet with the Committee to provide additional insight into our cybersecurity and privacy strategy and tactics.

Our approach to mitigating cybersecurity risks includes review by third party experts, training for directors (both internally and externally), holding within the Company a global cybersecurity awareness week to cultivate an informed and proactive workforce, and the adoption of the National Institute of Standards and Technology Framework for Improving Critical Infrastructure Cybersecurity (the "NIST Framework"). The NIST Framework provides a comprehensive method for developing a flexible, repeatable, performance-based and cost-effective approach to identifying and managing cybersecurity risks. We measure ourselves against the NIST Framework to assess our own maturity on cybersecurity.

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Our cybersecurity defenses utilize technologies such as firewalls, intrusion detection, and encryption to ensure the privacy and security of our customers' data, with a dedicated security information and event management team monitoring our applications constantly.

Executive Officer Succession Planning

One of the primary responsibilities of the Board is to ensure that West has the appropriate Management to execute our long-term strategy. Our Corporate Governance Principles state the Board must plan for succession with respect to the CEO and monitor Management's succession planning for other key executives. In fulfilling this duty, the Board, together with the CEO and Chief Human Resources Officer ("CHRO") reviews at least annually, the development and retention plans of senior Management talent as well as succession plans for the CEO and other senior Management positions.

During these reviews, the Board discusses:

In addition, our CEO has as an annual goal for the development of senior leaders and the maintenance of the global succession plan for key positions within the Company. To that end, detailed succession and contingency plans in the event the CEO becomes unable to serve for any reason are in place. These plans are reviewed annually by the NCGC and discussed with the Board. Finally, throughout the year, Board members are exposed to leadership and pipeline candidates through Management presentations, roundtable discussions, and other informal meetings to assess the depth of our leadership pipeline.

CEO Evaluation Process

In assessing the performance of our CEO, the independent directors engage in a robust assessment process that is managed throughout the year and culminates in a formal annual performance review. The assessment includes the following:

Working with the Compensation Committee's independent compensation consultant, the Chair of the Compensation Committee considers all this information in developing its recommendations for compensation, as discussed below in our "Compensation Discussion and Analysis."

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Corporate Responsibility

As a leader in our industry, we recognize our responsibility to conduct business in a sustainable manner and strive to be a good corporate citizen. Our CR efforts include six key areas of focus: Compliance and Ethics, Philanthropy, Diversity and Inclusion, Health and Safety, Environmental Sustainability and Quality. West's Management routinely reviews materials published by our shareholders and key customers and directly engages with these same stakeholders on governance and responsibility topics. We have also received multiple awards for our Corporate Responsibility efforts this year. Detailed below is a brief overview of our progress, which is generally made available in May on our website atwww.westpharma.com/about-west/corporate-responsibility. Information on that website is updated periodically and believed to be true at the time it is posted, but it is not filed and does not constitute part of this Proxy Statement.

Compliance & Ethics.    Our Compliance and Ethics standards include holding ourselves to the highest standards of quality, integrity and respect as outlined in our Code of Business Conduct ("COBC"), described below, which is supported by our training program led by our Chief Compliance Officer, and our annual Compliance Week efforts.

Philanthropy.    West has long-placed importance in supporting charities, particularly as it relates to children, people with disabilities, healthcare and Science Technology Engineering and Math ("STEM") education in the communities where our team members live and work. In 2019, charitable giving by the Company, our employees and the Herman O. West Foundation totaled approximately $2.8 million. Importantly, we also recorded more than 8,000 hours of volunteerism by our team members across our global sites.

Diversity and Inclusion.    As discussed above, we strive to create and maintain a workplace rich with diverse people, talent and ideas, and to create an inclusive environment for all employees to succeed. We have increased awareness, adopted affirmative action programs to identify any gaps, and strengthened programs and policies, which includes a global anti-discrimination and anti-harassment policy. We also maintain a growing number of employee resource groups to support our culture of respect and inclusion.

Health and Safety.    Providing a healthy and safe environment for our employees is a fundamental responsibility for Management. We have developed and implemented new safety protocols and procedures to create a culture of safety, which incorporates behavior-based training and observations. We consistently aim to have a zero-injury workplace and monitor our progress to that goal, which has resulted in a reduction of injuries over the past four years by more than 66%. These goals are set using globally-recognized benchmarks included in our CEO's annual performance objectives.

Environmental Sustainability.    We strive to be stewards of a sustainable future by factoring environmental considerations into our decision making for raw materials, production processes and distribution methods. We exceeded our emissions, energy and water intensity goals established in 2013 for 2020 and reset them in 2019. West has also continuously improved our rating under the Carbon Disclosure Project about 5% annually since 2013, culminating in our highest rating ever in 2019.

Quality.    At West, we are committed to safeguarding the health and safety of patients who use our products and services. We provide high-quality products that are designed to be safe and effective for their intended use. Quality product and system controls are designed to ensure compliance with our high standards and applicable FDA current Good Manufacturing Practices, International Organization for Standardization standards and regulatory requirements. West utilizes customer feedback and in-process manufacturing data to improve processes and product performance. The Company continues to deliver industry-leading quality levels every year.

2019 Shareholder Outreach

Our Board considers its relationship with our shareholders to be important to effective corporate governance. To ensure that the Board considers shareholder views on compensation, corporate governance, corporate responsibility and other significant matters, we maintain an active shareholder engagement program. Throughout the year, Management meets with our actively-managed, institutional shareholders, which own a majority of our shares. At every Board meeting, Management discusses topics raised by our shareholders and solicits Board input.

One area of focus for us and our shareholders is the alignment of pay and performance in a manner that enhances shareholder value. Our shareholders have historically expressed support for our performance goals and metrics.

Additionally, Management continues to hear our shareholders express support for our corporate governance framework, Board membership and Board policies, including our tenure policies. Shareholder interest in environmental, social and governance matters has led to additional disclosures and progress in those areas with the Board's oversight.

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Communicating with the Board

You may communicate with the Chair of the Board or the independent directors as a group by sending a letter addressed to the Board of Directors, c/o Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, Pennsylvania 19341. Communications to a particular director should be addressed to that director at the same address. Our Corporate Secretary maintains a log of all communications received through this process. Communications to specific directors are forwarded to those directors. All other communications are given directly to the Chair of the Board who decides whether they should be forwarded to a Board committee or to Management for further handling.

Director Education and Onboarding

The Board believes shareholders are best served by Board members who are well versed in corporate governance principles and other subject matters relevant to board service. The Board arranges for a series of annual educational presentations on its calendar. Also, to encourage continuing director education, all directors may attend any director education programs they consider appropriate to stay informed about developments in corporate governance and the markets we serve. The Company reimburses directors for the reasonable costs of attending director education programs.

The Board also works with Management to ensure that new directors are onboarded through a robust process. The onboarding process includes educational meetings with all officers and other critical members of senior Management who provide insight into the Company's business, strategy and culture, the Board and its Committees, Company policies and fiduciary and legal obligations. All directors have access to online resources maintained by the Company which includes key charters, policies, procedures, principles, corporate governance documents, and similar information. Additionally, all directors are provided access to analyst reports, press releases, and the Company's strategic plan and investor presentations.

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Corporate Governance Documents and Policies

Our principal governance documents are our Corporate Governance Principles, Board Committee Charters, director qualification standards, including our Independence Standards, and Code of Business Conduct. Aspects of our governance documents are summarized below. We encourage our shareholders to read our governance documents, as they present a comprehensive picture of how the Board addresses its governance responsibilities to ensure our vitality and success. The documents are available in the "Investors—Corporate Governance" section of our website atwww.westpharma.com and copies of these documents may be requested by writing to our Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341.

Corporate Governance Principles

Our Board has adopted Corporate Governance Principles to provide guidance to our Board and its committees on their respective roles, director qualifications and duties, Board and committee composition, organization and leadership. Our Nominating and Corporate Governance Committee reviewed and significantly updated our Corporate Governance Principles to meet best practices in corporate governance during 2017. In 2019, the Committee confirmed that the Corporate Governance Principles address our current and long-term business needs and enhanced our sections on diversity. Our Corporate Governance Principles address, among other things:

Ethics and Code of Business Conduct

All our employees, officers and directors are required to comply with our Code of Business Conduct as a condition of employment or service. The COBC covers fundamental ethical and compliance-related principles and practices such as accurate accounting records and financial reporting, avoiding conflicts of interest, protection and proper use of our property and information and compliance with legal and regulatory requirements. The Board has adopted a comprehensive Compliance and Ethics Program, which was substantially updated in 2016, and has been reviewed and reaffirmed in subsequent years as meeting the needs of our Company, its shareholders and other stakeholders.

Additionally, the Board adopted a Supply Chain Policy Statement, as required under the laws of the United Kingdom, which are similar to those in California. This Supply Chain Statement indicates West's compliance with various acts and reaffirms our commitment to the Pharmaceutical Supply Chain Initiative ("PSCI"). PSCI supports the efforts of pharmaceutical suppliers to meet industry expectations about ethics, labor, health and safety, environmental and management systems, including a prohibition against the use of forced, bonded or indentured labor. These commitments are also reflected in our Business Partner Code of Conduct. Both codes are available here: www.westpharma.com/about-west/corporate-responsibility/compliance-and-ethics. Susan A. Morris is our Chief Compliance Officer and reports directly to the Audit Committee of the Board on all compliance matters. Ms. Morris trains the Board on compliance matters and delivers regular reports on program developments and initiatives to the Audit Committee and no less than annually to the full Board.

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CORPORATE GOVERNANCE DOCUMENTS AND POLICIESGRAPHIC

Director Independence

Our Board has adopted a formal set of categorical director independence determination standards (“Standards”).Independence Standards. The Independence Standards meet or exceed the independence requirements of the NYSE corporate governance listing standards. Under the Independence Standards, a director must have no material relationship with us other than as a director. The Independence Standards specify the criteria for determining director independence, including strict guidelines for directors and their immediate families regarding employment or affiliation with us, members of our senior Management or their affiliates. The full text of the Independence Standards may be found under the "Investors — Investors—Corporate Governance" section on our website atwww.westpharma.com.

The BoardNCGC undertook its annual review of director independence in February 2018.2020. As a result of this review, the NCGC recommended and the full Board did not substantively reviseconcurred that no revision of the Standards.Independence Standards was required. Subsequently, the Board considered whether any relationships described under the Independence Standards between the Company and each individual director existed. The Board affirmatively determined that each of its non-employee directors is independent of the Company and its Management team as defined under the Independence Standards.

Related Person Transactions and Procedures

Executive Sessions of Independent Directors

OurThe Board also holds regular executive sessions of only independent directors to review the Company’s strategy and Management’s operating plans, the criteria by which our CEO and other senior executives are measured, Management’s performance against those criteria and other related issues and to conduct a self-assessment of its performance.  Last year, our independent directors held six executive sessions.

Board Refreshment and Retirement Age

We review our Board refreshmenthas adopted written policies and retirement age annually, and we continueprocedures relating to monitor trends in this area.

The Board does not have term limits on the service of our directors, because we believe that term limits may lead to loss of valuable director insight into our business and operations that is enhanced with continuity. The Board believes that a diverse mix of long-tenured and new Board members provides a good and appropriate balance of experience to enhance shareholder value.

In 2017, we revised our Corporate Governance Principles to increase the mandatory retirement age from 72 to 75.  This means that a non-employee director must retire on the date of the Annual Meeting of Shareholders immediately following his or her 75th birthday. The Board revised the retirement age because the Board believes that directors may continue to provide meaningful, independent oversight and advice past age 72.

An employee director must submit his or her resignation upon the date he or she ceases to be an executive of the Company.

Director Evaluation

Each year the Board and each committee review their performance as a committee during executive sessions.  This review centers around questions directors are asked to contemplate before the meeting.  These questions include topics such as the relationship between members, quality of the materials provided, the relationship with management, their calendar and topics that they would like to see added or deleted to meeting agendas.

Additionally, the Nominating and Corporate Governance Committee's review and approval of transactions with related persons that are required to be disclosed in proxy statements under SEC regulations. A "related person" includes our directors, officers, 5% shareholders and their immediate family members.

Under these policies, the NCGC reviews the material facts of all related-person transactions, determines whether the related person has a material interest in the transaction and may approve, ratify, rescind or take other actions.

In approving a transaction, the Committee will consider, among other factors, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related person's interest in the transaction.

The Committee reviews and pre-approves certain types of related person transactions, including certain transactions with companies at which the evaluationrelated person is an employee only, and charitable contributions that would not disqualify a director's independent status. The policy and procedures can be found in the "Investors—Corporate Governance" section of our website,www.westpharma.com.

We have no related person transactions required to be reported under applicable SEC rules.

Political Contributions and Lobbying

While we encourage directors, officers and employees to become involved in the political process annuallyin their individual capacity, including personal contributions to political campaigns, no West employee or director may conduct personal political activity on Company time or use Company funds, property or equipment for political activities. We comply with the laws related to contributing to, directly or indirectly, political organizations and makes suggested changes  when necessary.  Beginninggovernment officials. Under our Corporate Governance Principles, the Board is responsible for overseeing the process used by the Company to ensure the Company's policy prohibiting political contributions is effectively implemented.

The Company made no political contributions in 2016, the Chairman of this Committee reaches out to each director individually to discuss any concerns2019 but does hold membership in recognized and relaysreputable industry groups that may conduct lobbying activities.

Anti-Hedging and Pledging Policies

We prohibit directors, officers and employees from engaging in hedging or monetization transactions, such as zero-cost collars and forward sale contracts, which would allow them to continue to own our common stock, but without the Board using an interview template approvedfull risks and rewards of ownership. We also prohibit directors, executive officers and other senior employees from engaging in pledging or hypothecating our securities as collateral for a loan without demonstrating to the General Counsel that a director or officer has the financial capacity to repay the loan. It is expected that this exception would be permitted only in exceedingly rare circumstances. No pledging is permitted to cover margin debt. Additionally, no West securities may be held in a margin account by the Committee.

We believe this evaluation system, coupled with our strong Chairmandirectors or officers because there is a risk of the Boardshares being sold without consent. Directors and open-door policy, which encourage sharing of ideas among all directors, makes for a robust process that ensures the Board’s effectiveness.

Director Education

The Board believes shareholdersofficers are best served by Board members who are well versedprohibited from engaging in corporate governance principlesshort sales or other short-position transactions in West securities as well.

2020 Annual Meeting and other subject matters relevant to board service.  Therefore, all directors are encouraged to attend any director education programs they consider appropriate to stay informed about developments in corporate governance and the markets we serve.  The Company reimburses directors for the reasonable costs of attending director education programs.  To encourage continuing director education, the Board also arranges for a series of annual educational presentations on its calendar.Proxy Statement   |   23


Share Ownership Goals for Directors and Executive ManagementTable of Contents

GRAPHIC CORPORATE GOVERNANCE DOCUMENTS AND POLICIES

Share Ownership Goals

Directors.To encourage significant share ownership by our directors and further align their interests with the interests of our shareholders, directors are expected to acquire within three years of appointment, and to retain during their Board tenure, shares of our common stock equal in value to at least five times their annual retainer. AllThe ten directors elected prior to 2020 meet this requirement, orincluding directors who are still within the initial three-year periodperiod. Mr. Friel, who was appointed in February 2020, has not yet met the ownership goal, but is expected to obtaindo so during the necessary shares.required period.

Officers.    Share ownership goals further align an officer's interests with those of our shareholders and encourage a long-term focus. Within five years of attaining their position, all executive officers must acquire shares of common stock with a value equal to designated multiples of their base salary. The Board has also setCompensation Committee established a goal of six times base salary for the CEO and two times base salary for all other executive officers. A full description of the officer share ownership goals for senior executive Management, which are described under “Compensation Discussion and Analysis — Other Compensation Policies.”

2017 Shareholder Outreach

To ensure that the Board considers shareholder views on compensation, corporate governance and business matters, we maintain an active shareholder engagement program.  Throughout the year, Management meets with our actively-managed, institutional shareholders, which own a majority of our shares.   Management discusses topics of interest from our shareholders, solicits their input on these topics and provides our own views on these topics. The Board receives regular updates on investor feedback.

The Board remains committed to aligning pay and performance in a manner that enhances shareholder value.  Our shareholders have historically expressed support for our long-term performance goals, including return on invested capital and top line sales growth.

Additionally, Management heard our shareholders express support for our corporate governance framework, Board membership and Board policies, including our tenure policies.

During 2017, we also addressed director attendance and its importance with these shareholders.  Our Board is committed to ensuring that directors attend meetings and that the Board and its Committees devote sufficient time necessary for the effective oversight of the Company and its Management.

Communicating with the Board

You may communicate with the Chairman of the Board or the independent directors as a group by sending a letter addressed to the Board of Directors, c/o Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, Pennsylvania 19341.  Communications to a particular director should be addressed to that director at the same address.

Our Corporate Secretary maintains a log of all communications received through this process.  Communications to specific directors are forwarded to those directors.  All other communications are given directly to the Chairman of the Board who decides whether they should be forwarded to a Board committee or to Management for further handling.

Director Nominations, Criteria and Diversity

Candidates for nomination to our Board are selected by the Nominating and Corporate Governance Committee in accordance with the Committee’s charter, our Articles of Incorporation, our Bylaws and our Corporate Governance Principles.  All persons recommended for nomination to our Board, regardless of the source of the recommendation, are evaluated by the Committee.

The Board and the Nominating and Corporate Governance Committee consider, at a minimum, the following factors in recommending potential new Board members or the continued service of existing members:

·      A director is nominated based on his or her professional experience.  A director’s traits, expertise and experience add to the skill-set of the Board as a whole and provide value in areas needed for the Board to operate effectively.

·      A director must have high standards of integrity and commitment, and exhibit independence of judgment, a willingness to ask hard questions of Management and the ability to work well with others.

·      A director should be willing and able to devote sufficient time to the affairs of the Company and be free of any disabling conflict.

·      All the non-employee directors should be “independent” as outlined in our Standards.

·      A director should exhibit confidence and a willingness to express ideas and engage in constructive discussion with other Board members, Management and relevant persons.

·      A director should actively participate in the decision-making process, be willing to make difficult decisions, and demonstrate diligence and faithfulness in attending Board and committee meetings.

·      The Board generally seeks active or former senior executives of public companies, particularly those with international operations, leaders in healthcare or public health fields, with science or technology backgrounds, and individuals with financial expertise.

When reviewing nominees, the Nominating and Corporate Governance Committee considers whether the candidate possesses the qualifications, experience and skills it considers appropriate in the context of the Board’s overall composition and needs.  The Nominating and Corporate Governance Committee also values diversity on the Board in the director nominee identification and nomination process.

Our Corporate Governance Principles include a statement of the importance of board diversity to ensure that the director nomination process considers a diverse mix of background, age, gender, sexual orientation, as well as cultural and ethnic composition.  Accordingly, the Committee’s evaluation of director nominees includes consideration of their ability to contribute to the diversity of personal and professional experiences, opinions, perspectives and backgrounds on the Board.  The Committee regularly assesses the effectiveness of this approach as part of its review of the Board’s composition.

In 2017, we appointed a new Board member, Ms. Keller, who has experience leading a multinational drug development business that partners with leading pharmaceutical and biotechnology companies like our Company.  In addition, we increased our mandatory retirement age from 72 to 75.  Each of these actions help to ensure we have a diversity of perspectives and experience levels on the Board.

To assist it with its evaluation of the director nominees for election at the 2018 Annual Meeting, the Committee considered the factors listed above and used a skills matrix highlighting the experience of our directors in areas such as industry experience, international background, leadership, financial literacy, risk management expertise and independence.

Under the heading “Director Qualifications and Biographies,” we provide an overview of each nominee’s principal occupation, business experience and other directorships of publicly-traded companies, together with the qualifications, experience, key attributes and skills the Committee and the Board believe will best serve the interests of the Board, the Company and our shareholders.

Shareholders who wish to recommend or nominate director candidates must provide information about themselves and their candidates and comply with procedures and timelines contained in our Bylaws.  These procedures are described under “Other Information 2019 Shareholder Proposals or Nominations” in this Proxy Statement.

Related Person Transactions and Procedures

The Board has adopted written policies and procedures relating to the Nominating and Corporate Governance Committee’s review and approval of transactions with related persons that are required to be disclosed in proxy statements under SEC regulations.  A “related person” includes our directors, officers, 5% shareholders and immediate family members of these persons.

Under the policy, the Nominating and Corporate Governance Committee reviews the material facts of all related-person transactions, determines whether the related person has a material interest in the transaction and may approve, ratify, rescind or take other action with respect to the transaction.

In approving a transaction, the Committee will consider, among other factors, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related person’s interest in the transaction.

The Committee reviews and pre-approves certain types of related person transactions, including certain transactions with companies at which the related person is an employee only, and charitable contributions that would not disqualify a director’s independent status.  The policy and proceduresrequirements can be found in our "Compensation Discussion and Analysis."

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Table of Contents

STOCK OWNERSHIPGRAPHIC

Stock Ownership

The table below shows the Investors—Corporate Governance — Governance Documents” sectionnumber of shares of our website, www.westpharma.comcommon stock beneficially owned as of March 5, 2020, by each of our directors, each NEO and all current directors and executive officers as a group. For executive officers, in addition to shares owned directly, the number of shares includes: (a) vested shares held in employee participant accounts under our 401(k) plan, Nonqualified Deferred Compensation Plan for Designated Employees ("Employee Deferred Compensation Plan") and Employee Stock Purchase Plan; and, (b) time-vested restricted stock and Restricted Stock Units ("RSUs") held in various incentive plan accounts, unless receipt of those shares has been deferred. For non-employee directors, in addition to shares owned directly, the common stock column includes vested deferred stock and stock-settled stock units awarded under the Nonqualified Deferred Compensation Plan for Non-Employee Directors ("Director Deferred Compensation Plan").

Name
Common
Stock


Options Exercisable
Within 60 Days


Percent
of Class


Silji Abraham6,1977,300*
Bernard J. Birkett10,3227,296*
Mark A. Buthman38,222-0-*
William F. Feehery26,843-0-*
Robert F. Friel244-0-*
Eric M. Green79,337512,856*
Thomas W. Hofmann40,412-0-*
Paula A. Johnson45,275-0-*
Deborah L. V. Keller6,200-0-*
Myla P. Lai-Goldman14,940-0-*
Douglas A. Michels40,608-0-*
George L. Miller25,37672,725*
David A. Montecalvo5,24631,216*
Paolo Pucci6,490-0-*
Patrick J. Zenner73,920-0-*
All directors and executive officers as a group (19 persons)451,274743,0951.6%​​
*
Less than one percent of outstanding shares.

2020 Annual Meeting and Proxy Statement   |   25


We have no related person transactions required to be reported under applicable SEC rules.

DIRECTOR COMPENSATIONTable of Contents

GRAPHIC STOCK OWNERSHIP

Based on a review of filings with the SEC, we have determined that the persons listed below hold more than 5% of the outstanding shares of our common stock as of March 6, 2020. Unless otherwise stated, each holder has sole voting and dispositive power over the shares listed.

Name and Address of Beneficial Owner
Shares
Percent of Class
BlackRock, Inc.
55 East 52nd Street
New York, NY 10022
8,158,920(2)11.0%
The Vanguard Group, Inc.
100 Vanguard Boulevard
Malvern, PA 19355


7,499,113(1)10.1%
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
6,830,989(3)9.2%
Franklin Resources, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906


4,445,600(4)6.0%
(1)
Includes sole voting power over 7,714,593 shares and sole dispositive power over all shares listed.
(2)
Includes sole voting power over 57,957 shares, shared voting power over 15,787 shares, shared dispositive power over 7,434,843 shares and shared dispositive power over 64,270 shares.
(3)
Includes sole voting power over 1,872,812 shares and sole dispositive power over all shares listed.
(4)
Franklin Advisers, Inc. ("FAS") and its affiliates have sole voting and dispositive power over all shares listed. FAS is an investment management subsidiary of Franklin Resources, Inc. ("FRI"). FRI treats FAS as having sole investment discretion and voting authority for all shares listed. Additionally, Charles B. Johnson and Rupert H. Johnson ("Principal FRI Shareholders") are each shareholder of more than 10% of FRI, but also do not claim investment or voting interests in the Company stock held by FRI. However, FRI believes that FAS and the Principal FRI Shareholders are a "group" for purposes of applicable securities law.

26   |   2020 Annual Meeting and Proxy Statement


Director Compensation

Table of Contents

DIRECTOR COMPENSATIONGRAPHIC

2017 Non-Employee Director Compensation

Director Compensation

2019 Non-Employee Director Compensation

TheOur Director compensation structure wasis reviewed in 2017annually by the Board of Directors in consultation with Pay Governance LLC (“("Pay Governance”Governance"), our independent compensation consultant. After this review, it wasthe Board determined that noto increase certain compensation elements effective January 1, 2019. The primary changes were necessarya $10,000 increase in the annual Board membership retainer, a $20,000 increase in the value of the Chair of the Board retainer and a $30,000 value increase in RSUs. The changes were the result of market adjustments to keep us competitive with members of our Business Segment Group (discussed in our Compensation Discussion and Analysis) and to account for the additional time needed as directors' roles have grown. This was the first increase to the fee paid to the Chair of the Board since separating the role from the CEO in 2015. Additionally, by increasing the annual RSU grant value more than the cash retainer (18.8% vs. 12.5%), we slightly increased the ratio of at-risk equity-based elements to fixed income. Lastly, the Chair's additional award, which had historically been subject to an annual election by the Chair to receive as cash or quarterly-vesting restricted shares, was revised to automatically be paid 50% in cash and 50% in an increase to the Chair's annual RSU award vesting annually. This change was made to codify the receipt of equity based on the historical split and to harmonize the equity awards that directors receive. The revised compensation structure.  The structure that was in effect for all of 2017 is set forth below.

Compensation Item

 

Amount

 

 

 

 

 

Annual Retainers and Chair Fees

 

 

 

Board membership

 

$

80,000

 

Chairman of the Board

 

100,000

*

Audit Committee Chair

 

20,000

 

Compensation Committee Chair

 

20,000

 

All Other Committee Chairs

 

10,000

 

Restricted Stock Units

 

160,000

 


Compensation Item


Amount

Annual Retainers and Chair Fees

 

Board membership

$90,000

Chair of the Board

120,000*

Audit Committee Chair

20,000

Compensation Committee Chair

20,000

All Other Committee Chairs

10,000

RSUs

190,000
* Payable
$60,000 of this value is delivered as an increase in the Chair's annual Board membership retainer cash or restricted stock, which vests 25% per quarter,and the remaining $60,000 is delivered as elected annually byan increase in the Chairman.

Chair's RSU award subject to the same one-year vesting schedule applicable to the RSU award.

The following table shows the total 20172019 compensation of our non-employee directors. Robert F. Friel was not appointed a Director until February 2020, and, therefore had no compensation or stock outstanding during 2019. His 2020 compensation and stock will be reported in next year's Annual Proxy Statement.


20172019 Non-Employee Director Compensation

Name


Fees Earned or Paid
in Cash ($)


Stock Awards ($)
All Other
Compensation ($)


Total ($)

Mark A. Buthman

90,000189,99126,796��306,787

William F. Feehery

100,000189,99118,853308,844

Thomas W. Hofmann

110,000189,99128,700328,691

Paula A. Johnson

90,000189,99133,730313,721

Deborah L. V. Keller

90,000189,9913,871283,862

Myla P. Lai-Goldman

100,000189,99110,215300,206

Douglas A. Michels

110,000189,99128,843328,834

Paolo Pucci

100,000189,9914,081294,072

John H. Weiland*

31,648-0-204,402236,050

Patrick J. Zenner

150,000249,96344,328444,291
*
Mr. Weiland did not stand for reelection at the 2019 Annual Meeting of Shareholders, and, therefore, his service as a member of the Board of Directors ended on May 6, 2019.

2020 Annual Meeting and Proxy Statement   |   27


Name

 

Fees Earned or
Paid in Cash
($)

 

Stock Awards
($)

 

All Other
Compensation
($)

 

Total
($)

 

Mark A. Buthman

 

100,000

 

159,976

 

13,875

 

273,851

 

William F. Feehery

 

90,000

 

159,976

 

8,520

 

258,496

 

Thomas W. Hofmann

 

80,000

 

159,976

 

17,947

 

257,923

 

Paula A. Johnson

 

90,000

 

159,976

 

21,371

 

271,347

 

Deborah L. V. Keller

 

46,667

 

146,654

 

551

 

193,872

 

Myla P. Lai-Goldman

 

80,000

 

159,976

 

3,632

 

243,608

 

Douglas A. Michels

 

100,000

 

159,976

 

31,073

 

291,049

 

Paolo Pucci

 

80,000

 

159,976

 

1,644

 

241,620

 

John H. Weiland

 

90,000

 

159,976

 

31,073

 

281,049

 

Patrick J. Zenner

 

130,000

 

209,751

 

28,676

 

368,427

 

Table of Contents

GRAPHIC DIRECTOR COMPENSATION

Fees Earned or Paid in Cash

The amounts in the "Fees Earned or Paid in Cash

The amounts in the “Fees Earned or Paid in Cash”Cash" column are retainers earned for serving on our Board, its committees and as committee chairs and Chairman, Independent Directors or Chairman,Chair, as applicable. All annual retainers are paid quarterly. In 2019, we moved from paying in arrears to paying current, and, therefore, continuing directors received two payments in the first quarter—one related to the fourth quarter of 2018 and one for the current quarter. This change did not result in any increase in compensation earned overall with respect to 2019, and merely affected timing. For Mr. Zenner this amount includes his cash fees for serving as ChairmanChair of the Board.

The amounts are not reduced to reflect elections to defer fees under the Nonqualified Deferred Compensation Plan for Non-Employee Directors (“Director Deferred Compensation Plan”).Plan. During 2017,2019, Mr. Buthman Ms. Keller, Mr. Michels, and Mr. Weiland deferred 100% of his fees, and no other deferred any of their fees paid in 2017.  Dr. Lai-Goldman deferred 50% of these fees.

Stock Awards

Stock Awards

The amounts in the “Stock Awards”"Stock Awards" column reflect the grant date fair value of stock-settled RSU awards made in 20172019 and the grant date fair value isas determined under Financial Accounting Standards Board Accounting Standards Codification (“("FASB ASC”ASC") Topic 718. In 2017,2019, each continuing non-employee director was awarded 1,6971,561 RSUs, with a grant date fair market value of $94.27$121.40 per share based on the closing price of our common stock on the award date, May 2, 2017.7, 2019. These awards had a grant date fair value of $159,976.  Ms. Keller was awarded a prorated grant on the commencement of her service on June 1, 2017.  Her award was for 1,483 shares at $98.89 per share, which had a grant date fair value of $146,654.approximately $190,000. For a discussion on RSU grant date fair value, refer to Note 1214 of the consolidated financial statements in our 20172019 Annual Report.

RSUs are granted on the date of our Annual Meeting (or, as in the case with Ms. Keller, upon commencement of service) and fully vest on the date of the next Annual Meeting so long as a director remains on the Board as of that date. Generally, all unvested grants of equity forfeit upon termination. However, if a director retires during the calendar year that he or she reaches our mandatory retirement age, the award will vest on a monthly basis through retirement.

Stock-settled RSUs are distributed upon vesting, unless a director elects to defer the award under the Director Deferred Compensation Plan. In 2017,2019, all directors elected to defer their RSU awards. All awards are distributed as shares of common stock, as described below. When dividends are paid on common stock, additional shares are credited to each director’sdirector's deferred stock account as if those dividends were used to purchase additional shares.

For Mr. Zenner, this column also includes the 528 shares494 RSUs received out of restricted stock he elected to receivethe portion of his $60,000 Chair's annual retainer, that is payable in lieu of cash for his additional $100,000 Chairman’s annual retainer.RSUs as described above. The restricted stock,RSUs, which had a grant date fair value of $94.27, vests 25%$121.40 per quarter and was equivalent to approximately 50% of his Chairman’s retainer, or $49,775.share, will vest 100% at the 2020 Annual Meeting assuming he remains in service as a director through that date. These restricted sharesRSUs are issued and outstanding, and, therefore,also earn dividends.  They are not eligible to be deferred or credited to the Director Deferred Compensation Plan.  The remainder of this retainer was paid in cash.

dividend equivalents.

The table below shows the number of outstanding stock awards held by each director at year-end. No directors have any outstanding options. Mr. Friel was not appointed a director until 2020 and, therefore, had not outstanding stock awards on December 31, 2019.


Outstanding Director Stock Awards at Year-End 20172019

Board Member


Unvested Restricted
Stock Awards (#)


Vested Annual
Stock
Awards (#)



Unvested Annual Deferred
Stock and Stock-Settled RSU
(#)



Total Outstanding
Stock
Awards (#)



Mark A. Buthman

-0-36,6151,56838,183

William F. Feehery

-0-25,2481,56826,816

Thomas W. Hofmann

-0-38,8031,56840,371

Paula A. Johnson

-0-43,6621,56845,230

Deborah L. V. Keller

-0-4,6261,5686,194

Myla P. Lai-Goldman

-0-13,3571,56814,925

Douglas A. Michels

-0-30,6401,56832,208

Paolo Pucci

-0-4,9151,5686,483

John H. Weiland*

-0-49,230-0-49,230

Patrick J. Zenner

24860,2151,56862,031
*
Mr. Weiland's service ended May 6, 2019, and he received a distribution of 1,646 shares during 2019.

Name

 

Unvested Restricted
Stock Awards
(#)

 

Vested Annual
Deferred Stock
Awards
(#)

 

Unvested Annual
Deferred Stock and
Stock-Settled RSU
Awards
(#)

 

Total Outstanding
Stock Awards
(#)

 

Mark A. Buthman

 

-0-

 

22,114

 

1,702

 

23,816

 

William F. Feehery

 

-0-

 

17,171

 

1,702

 

18,873

 

Thomas W. Hofmann

 

-0-

 

34,878

 

1,702

 

36,580

 

Paula A. Johnson

 

-0-

 

34,028

 

1,702

 

35,730

 

Deborah L. V. Keller

 

-0-

 

-0-

 

1,487

 

1,487

 

Myla P. Lai-Goldman

 

-0-

 

7,865

 

1,702

 

9,567

 

Douglas A. Michels

 

-0-

 

22,114

 

1,702

 

23,816

 

Paolo Pucci

 

-0-

 

1,287

 

1,702

 

2,989

 

John H. Weiland

 

-0-

 

41,893

 

1,702

 

43,595

 

Patrick J. Zenner

 

265

 

39,404

 

1,702

 

41,371

 

All Other Compensation

All Other Compensation

The amounts in the “All"All Other Compensation”Compensation" column are Dividend Equivalent Units (“DEUs”("DEUs") credited to accounts under the Director Deferred Compensation Plan.  NoPlan and $1,500 charitable matching contributionsdonations made by Paula Johnson, which were made on behalfmatched by the Company's foundation. Additionally, for Mr. Weiland, this amount includes a retirement gift with a fair market value of any directors in 2017.$16,000

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Table of Contents

DIRECTOR COMPENSATIONGRAPHIC

and a distribution under the Director Deferred Compensation Plan upon the end of his service of 1,646 shares with a per-share value of $121.40 and a total fair market value of $199,824.

Director Deferred Compensation Plan

All non-employee directors may participate in the Director Deferred Compensation Plan, which permits participants to defer all or a part of their annual cash compensation until their Board service terminates. Deferred fees may be credited to a “stock-unit”"stock-unit" account that is deemed invested in our common stock or to an account that earns interest at the prime rate of our principal commercial bank. Stock-unit accounts are credited with DEUs based on the number of stock units credited on the dividend record date.

The value of a director’sdirector's account balance is distributed on termination of Board service. The value of a director’sdirector's stock-unit account is determined by multiplying the number of units credited to the account by the fair market value of our common stock on the termination date.

RSUs that a director elects to defer (and all shares of deferred stock) are distributed in shares of stock. Pre-2014 stock units may be distributed in cash in lieu of stock, if a director made an election in 2013. All post-2013 stock units are only distributable in stock. Partial shares are distributed in cash.

Directors may receive their distribution as a lump sum or in up to ten annual installments. Separate elections apply to amounts earned and vested before January 1, 2005 and amounts earned and vested after December 31, 2004, which solely applies to Mr. Zenner. If a director elects the installment option, the cash balance during the distribution period will earn interest at the prime rate of our principal commercial bank and deferred stock and stock-settled units will be credited with DEUs until paid.

Director Deferred Compensation Plan at Year-End 2017

The following table summarizes the amounts credited to each Director Deferred Compensation Plan account as of December 31, 2017:

Name

 

Cash-Settled Stock
Units Value(1)
($)

 

Vested Stock-
Settled Unit and
Deferred Stock
Value (1)
($)

 

Unvested
Deferred Stock
and RSU Value (1)
($)

 

Total Account
Balance
($)

 

Mark A. Buthman

 

-0-

 

3,062,322

 

167,925

 

3,230,247

 

William F. Feehery

 

-0-

 

2,117,853

 

167,925

 

2,285,778

 

Thomas W. Hofmann

 

-0-

 

3,441,412

 

167,925

 

3,609,337

 

Paula A. Johnson

 

-0-

 

4,083,754

 

167,925

 

4,251,679

 

Deborah L. V. Keller

 

-0-

 

47,362

 

146,748

 

194,110

 

Myla P. Lai-Goldman

 

-0-

 

946,936

 

167,925

 

1,114,861

 

Douglas A. Michels

 

619,083

 

2,743,788

 

167,925

 

3,530,796

 

Paolo Pucci

 

-0-

 

132,514

 

167,925

 

300,439

 

John H. Weiland

 

1,778,242

 

4,762,987

 

167,925

 

6,709,154

 

Patrick J. Zenner

 

-0-

 

5,507,957

 

167,925

 

5,675,882

 


(1)         Value is2019: All values on the following table are determined by multiplying the number of stock units or shares of deferred stock, as applicable, by $98.67,$150.33, the fair market value of a share of stock on December 29, 2017.31, 2019. A portion of the stock units reported below may relate to deferred compensation that has previously been reported in the “Fees"Fees Earned or Paid in Cash”Cash" column for the year the underlying compensation was earned by the director. Mr. Friel had no balance in the Director Deferred Compensation Plan on December 31, 2019.


Director Deferred Compensation Plan at Year-End 2019

Board Member


Cash-Settled Stock
Units Value ($)


Vested Stock—
Settled Unit and
Deferred Stock Value
($)




Unvested Deferred Stock
and RSU Value ($)


Total Account
Balance ($)


Mark A. Buthman

-0-5,504,354235,7775,740,131

William F. Feehery

-0-3,795,473235,7774,031,250

Thomas W. Hofmann

-0-5,833,237235,7776,069,014

Paula A. Johnson

-0-6,563,648235,7776,799,425

Deborah L. V. Keller

-0-695,383235,777931,160

Myla P. Lai-Goldman

-0-2,007,978235,7772,243,755

Douglas A. Michels

1,256,5954,606,150235,7776,098,522

Paolo Pucci

-0-738,836235,777974,614

John H. Weiland

2,187,8847,400,694-0-9,588,578

Patrick J. Zenner

-0-9,052,119272,9899,325,108
*
Mr. Weiland's service ended May 6, 2019, and he received a distribution equal to $199,824 during 2019.

2020 Annual Meeting and Proxy Statement   |   29


Table of Contents

GRAPHIC COMPENSATION COMMITTEE REPORT

Compensation Committee Report

Set forth below is the Compensation Discussion and Analysis, which outlines West's executive compensation programs and policies and how such policies are used to align executive compensation with business performance and shareholder return. This section describes our executive compensation programs for 2019, the compensation decisions made under those programs and the factors considered by the Committee in making those decisions.

In performing its governance function, the Compensation Committee has reviewed and discussed with Management the "Compensation Discussion and Analysis." Based on its review and discussion with Management, the Compensation Committee recommended to the Board, and the Board approved, the inclusion of the "Compensation Discussion and Analysis" in this Proxy Statement and in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

Compensation Committee



Douglas A. Michels, Chair
Mark A. Buthman
William F. Feehery
Thomas W. Hofmann

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Table of Contents

COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

Compensation Discussion and Analysis

The 2019 Compensation Discussion and Analysis describes and provides disclosure about the objectives and policies underlying our executive compensation program. It details the compensation for each of our Named Executive Officers ("NEOs") and the factors considered by the Committee when making compensation decisions. The NEOs for 2019 are as follows:

    Eric M. Green, President and Chief Executive Officer;

    Bernard J. Birkett, Senior Vice President and Chief Financial Officer;

    George, L. Miller, Senior Vice President, General Counsel and Corporate Secretary;

    David A. Montecalvo, Senior Vice President and Chief Operations and Supply Chain Officer;

    Silji Abraham, Senior Vice President, Chief Digital and Transformation Officer;

    Karen A. Flynn, Former Senior Vice President and Chief Commercial Officer.(1)

(1)
Ms. Flynn retired on December 31, 2019

Executive Summary: 2019 Performance at a Glance

West's long-term business strategy includes growing and expanding our products and services to meet the unique needs of our customer groups, operating with excellence to drive efficient utilization of our global manufacturing footprint and building the capabilities of our team to address current and future business needs. This strategy drives our long-term financial construct to grow sales by six to eight percent annually, and achieve improved profitability year-over-year, in turn creating a sustainable business that will meet the needs of our customers, patients, shareholders, and employees. Our five-year TSR through December 31, 2019 was 207%.

Highlights of our 2019 performance include the following:

Our strategy to globalize our operations and address the unique needs of the distinct customer groups we serve with a market-led focus, has delivered another strong year of growth for the Company. Some of the trends we are seeing in the pharmaceutical and biotech industry are driving our business today, and will fuel our long-term growth strategy, including the following:

    Biotechnology has emerged as one of the most promising sources of therapies and products for patient care, leading to a rise in FDA-approved drugs derived from biologics.

    Research has demonstrated that in certain circumstances subcutaneous administration can be as effective as IV administration, while significantly reducing infusion-related reactions and administration time.

    Self-administration is driving key industry developments, most notably the rise of combination products that place easy-to-use delivery systems in the hands of individual patients.

    The regulatory landscape is evolving, particularly related to combination products. Both the FDA and the European Union have introduced updated guidance on how such products are reviewed and approved for sale, and the quality and regulatory documentation that is required.

Each year, we have seen growing interest and demand for our high-value product offerings, delivery device platforms and our contract-manufacturing services. Customers are also coming to West for our scientific expertise and insight into the regulatory landscape that governs our industry. This demand has translated into positive results for the business. In 2019, we reported:

    Full-year 2019 sales of $1.840 billion grew 7.1%; organic sales growth was 10.0%; sales from a recent acquisition contributed an additional 10 points of growth; currency translation reduced sales by 300 basis points.

    Full-year 2019 reported-diluted EPS of $3.21 increased 17%. Full-year 2019 adjusted-diluted EPS of $3.24 increased 15%.

    Full year 2019 gross profit margin was 32.9%, a 110-basis point increase from the prior year. Our Proprietary Products segment gross profit margin expanded by 150 basis points, and the Contract-Manufactured Products segment gross profit margin increased by 10 basis points.

    Full-year 2019 operating cash flow was $367.2 million, an increase of 27%. Capital expenditures were $126.4 million, compared to $104.7 million over the same period last year, and represented 6.9% of full-year 2019 net sales. Free cash flow (operating cash flow minus capital expenditures) was $240.8 million, an increase of over 30%.

The foregoing discussion is qualified by the information contained in the performance graph in our 2019 Annual Report, the "Financial Measures and Adjustments" section beginning on page 42 of this Proxy Statement and our non-U.S. GAAP reconciliation set forth in the Form 8-K filed February 13, 2020.

2020 Annual Meeting and Proxy Statement   |   31


EXECUTIVE Table of Contents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

GRAPHIC

(1)
Based on 2019 Consolidated Net Sales.

(2)
Please refer to our Forms 8-K reports dated February 13, 2020 and January 9, 2019 for the reconciliation of non-U.S. GAAP financial matters.

(3)
Source: NASDAQ IR Insight

2019 Committee Actions and Rationale

​  Executive Compensation Actions & Results

Reaffirmed West's compensation philosophy of pay-for-performance that aligns executives' incentive compensation with Company performance and stakeholder interests on both a short- and long-term basis, without promoting excessive risk



Further refined the Company's AIP to drive stronger alignment with our business objectives; Assigned all Corporate Officers to the Corporate AIP pool to drive overall performance and alignment to our One West value



​  


Reaffirmed continuation of the two-comparator group approach used for executive and director pay and pay-for-performance benchmarking


Governance and Compensation

Executive Compensation Philosophy

Executive Summary

Our Compensation Philosophy and Goals

We believe that our long-term successcompensation philosophy is directly relatedto provide competitive executive pay opportunities tied to our abilityshort-term and long-term success. This overriding pay-for-performance approach enables us to attract, motivate and retain highly talented individuals committed to driving innovation inthe type of executive leadership that will help us achieve our productsstrategic objectives and services improving financial performance, achieving profitable growth on a sustainable basis and enhancingrealize increased shareholder value.

To that end, our Compensation Committee (all subsequent references to “Committee” in this Executive Compensation section are toachieve these goals, we have adopted the Compensation Committee) has developed and implemented a pay-for-performance compensation philosophy that closely aligns our executives’ incentive compensation with Companyfollowing program objectives:

    Reward achievement of both operating performance and shareholderstrategic objectives

    Align the interests of West's leaders to those of our investors by varying compensation based on a short-both short-term and long-term basis without promoting excessive risk.  When we deliver expected performance, ourbusiness results and delivering a large portion of the total pay should approximate the market median.  Actual compensation, however, varies with our performance.

    For our Corporate function participants and Ms. Flynn, our annual cash incentive bonus plan, the Annual Incentive Plan (“AIP”), is based on our performance on three financial measures: Adjusted Diluted EPS, Adjusted Operating Cash Flow (“OCF”) and Adjusted Consolidated Revenue (“Adjusted Revenue”).

    Mr. Montecalvo, who leads our Global Operations and Supply Chain function, has goals based 50% on the aforementioned Corporate metrics and 50%opportunity in West stock

    Differentiate rewards based on performance against goals for Gross Profit for our proprietary products (“Proprietary GP”) and OCF for our proprietary products (“Proprietary OCF”).

    All goals are set usingbusiness objectives to drive a rigorous process to ensure sufficient stretch and encouragepay-for-performance culture, with a major portion of executive pay based on achievement of financial performance goals

    Promote a balanced incentive focus that does not encourage unnecessary or unreasonable risk-taking

    Be market-competitive to attract and retain highly qualified senior leaders needed to drive a global enterprise

32   |   2020 Annual Meeting and Proxy Statement


Table of Contents

Best Practices that Support Our Executive Compensation Philosophy

The Compensation Committee oversees the governance, design and administration of our committed growth targets.  Our annual incentive plan targetsexecutive compensation programs and our incentive compensation philosophy are reviewed annually by the Committee to ensure alignment with our organizational structureevaluates these programs against competitive practices, legal and enterprise strategy.  This, in turn, drives alignment between payregulatory developments and performance.

Annual awards are paid only if performance meets or exceeds 85% of the target.  At the 85% threshold only 50% of the AIP target is paid with increasing amounts for improved performance.

corporate governance trends.

We believecontinue to incorporate leading design and governance practices into our long-term incentive awards are aligned with shareholder interests with targets based on the achievement of the three-year compound annual growth rate (“CAGR”) and the return on invested capital (“ROIC”) targets.  Both focused on delivering value over the long term and encouraging share ownership and help in the retention of key talent.compensation programs.

What We Do

What We Don't Do

Target Total Direct Compensation at the 50th percentile of our comparator group companies

Provide most of the compensation through performance-based incentives

Conduct realizable-pay-for-performance analyses of our CEO compensation and use tally sheets to provide additional information on the appropriateness and function of our executive pay

Incorporate in our CIC agreements a "double-trigger" feature requiring termination of employment to receive benefits

Require executive officers to meet West stock ownership guidelines and to take a portion of their annual incentive bonus in West shares until ownership guidelines are met

Cancellation or recovery of incentive compensation based on achievement of specified financial results that are the subject of a subsequent restatement or amounts determined to have been inappropriately received due to fraud, misconduct or gross negligence

Engage with an independent consultant to review compensation programs and decisions

No hedging, pledging or engaging in any derivatives trading with respect to our common stock

No repricing or exchange of awards without shareholder approval

No individual severance agreements for executive officers other than CEO

No tax gross-ups

No guaranteed incentive payouts

No accelerated vesting of equity awards for executive officers

No above-market returns on deferred compensation plans

Say-on-Pay

To ensure our long-term goals are delivering shareholder valueEach year, we undergo an annual review of the correlation between our long-term incentive plan (“LTIP”) payouts and our TSR over the performance period.  As in prior years, our review indicates that our LTIP is highly correlated to our TSR and that our TSR outpaces our peers and the market as a whole.

Finally, to ensure direct linkage to business performance and pay, a significant portion of the total compensation opportunity for each of our executives, including the NEOs, is directly dependent on the achievement of pre-established corporate goals — more than 82% for our CEO and more than 68% for our other NEOs.

2017 Say-on-Pay Results

At our 2017 Annual Meeting of Shareholders, we heldhold a shareholder “Say-on-Pay”"Say-on-Pay" advisory vote to approveassess the support for the compensation of our NEOs as disclosed in our Proxy Statement. Approximately 96%In 2019, our Say-on-Pay proposal received almost 98% support, consistent with each of our shareholders supportedthe previous three years.

2020 Annual Meeting and approved our NEO pay.  In 2017, 89.8%Proxy Statement   |   33


Table of these shareholders approved holding this advisory vote on an annual basis.Contents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

Executive Compensation Program Design

The Committee considered these votes as demonstrating strong support for ourspecific elements of West's executive compensation programs and continued to apply the same effective principles and philosophies that have been applied in prior years when making compensation decisions for 2017.  These principles and philosophies are highlighted above and described more fully below.are:

2017 Financial Highlights

The Company achieved record net sales, gross profit, adjusted operating profit and Adjusted Diluted EPS.  Compared to 2016, net sales increased 5.2% (at constant currency exchange rates), gross profit grew by 2.3%, and adjusted operating profit margin grew 0.2 margin points to 15.0%.  Full year adjusted diluted earnings per share was $2.78 as compared to $2.18 in the prior year, representing 28% growth.  For AIP purposes, we also excluded an unbudgeted $0.44 per share benefit due to an accounting change for stock-based compensation tax benefits and a $0.01 benefit generated by our unbudgeted share repurchase program. Excluding these items, the adjusted diluted EPS used in our AIP was $2.33 in 2017.  For additional information please see “2017 Performance and Compensation Highlights” on page 3.

Our shareholders also benefitted as we delivered a three-year TSR which placed us in the 84th percentile for the Business Segment Group of companies we use for benchmarking our executive compensation and more than doubled the TSR for the S&P 500 Index.  One-year TSR, however, lagged behind most of our peers and the S&P 500.  Nevertheless, Management remains focused primarily on longer-term goals and performance due to the inherent variability with annual performance.

With regard to our incentive plan targets, our annual plan uses a one-year measurement period and our LTIP uses three-year metrics.  Despite favorable comparisons to our Business Segment Group and the market in general, we fell short of our ambitious growth targets, we paid out at less than 100% for both plans.  The three-year long-term plan paid out at 96.60%, while the short-term annual incentive plan paid at 83.9% for four of our NEOs and 72.6% for Mr. Montecalvo.

However, LTIP recipients benefitted from the 89.3% three-year TSR, including dividend equivalents and a 71.8% stock price increase from $54.14 on February 23, 2015, which was the grant date for executives who were employed at the beginning of the period, to $93.00, the price on the payout date, February 13, 2018.  Our NEOs also shared in this price appreciation with regard to options awarded on that date (or their employment commencement date, if later).

One-Year Comparative TSR

Three-Year Cumulative TSR

Executive Compensation Elements

Compensation
Component

ObjectivesElement


Objective
Type
Key Features

Base Salary

Fair and competitive compensation to attract, retain and reward executive officers by providing a fixed level of cash compensation tied to experience, skills and capability relative to the market

Cash

·   Annual cash compensation that is not at risk

·  

Targeted at the 50th50th percentile of our compensation comparator groups, with variations based on experience, skills and other factors

·   Adjustments

Reviewed annually with adjustments considered annually based on level of pay relative to the market, individual and Company performance

Short-Term Annual Incentive Award

Focuses executives on annual results by rewarding them for achieving key budgeted financial targets

Links executives’ interestsexecutives' incentives with those of shareholders by promoting profitable growth

Helps retain executives by providing market-competitive compensation

Cash

·   At-risk

Annual cash awardsincentive based on Adjusted Dilutedachievement of key business metrics: Net Sales, EPS, Adjusted RevenueOCF and Adjusted OCF for all NEOs, and also Adjusted GP and Proprietary OCF for Mr. Montecalvo

Gross Profit

·  

Annual award payouts may vary from 0% to 150% of the targeted award based on achievement

Threshold performance required to achieve payment is 85% of target performance goal

Long-Term Incentive AwardCompensation (100% Equity)
(PSUs and Nonqualified Stock Options)

Aligns executives’executives' interests with those of shareholders by linking compensation with long-term Company and stock price performance that benefits our employees and shareholders

RetainsServes as both an incentive and provides incentives toretention vehicle for executives through multi-year performance share units (“PSUs”)PSUs and stock options

Promotes a sensible balance of longer-term risk and reward, without encouraging unnecessary or unreasonable risk taking

·   Performance-based long-term compensation

·   Generally targeted at a level that, when aggregated with AIP and base salary, will provide total direct compensation at the 50th percentile of comparator groups

·   Uses PSUs and stock options to provide rewards for both financial performance and increased stock price

·   PSUs have a three-year performance period; stock options vest in annual increments over a four-year period

·   Shares earned under PSU awards vary from 0% to 200% of targeted award

Retirement Plans and Nonqualified Deferred Compensation Plan

Attracts and retains executives by providing a level of retirement income and retirement savings in a tax-efficient manner

·   Provides a defined-benefit plan that transitioned to a cash-balance plan formula in 2007, which will be frozen in December 2018 and will be replaced with a non-elective defined contribution amount in January 2019

·   Executives may elect to defer up to 100% of their annual cash compensation

2017 Performance-Based Bonuses (Cash)

AIP payouts for all officers, including the NEOs, include measurement against performance for three principal Corporate financial metrics: Adjusted Diluted EPS, Adjusted Revenue and Adjusted OCF.  For Mr. Montecalvo, in addition to these goals which collectively make up 50% of his target bonus, he has targets based on Proprietary GP and Proprietary OCF.  The target bonus is set as a percentage of base salary, which for the NEOs, ranges from 60% to 105%.  2017 AIP target goals were set by the Committee based on the budget approved by the Board and the Committee’s determination that the targets contained sufficient “stretch.”  This analysis is aided by a retrospective review of our performance compared to that of our competitors.  This review is performed annually

by the Board’s independent compensation consultant, Pay Governance.

During 2017, we exceeded our target level for Adjusted OCF achieving 104.4% compared to target.  We exceeded the threshold for Adjusted Revenue and Adjusted Diluted EPS, but were below the target level resulting in an overall payout of 83.9% for these Corporate metrics for all NEOs, including Ms. Flynn, though she had different metric weights as discussed below.

As noted above, for Mr. Montecalvo, the Corporate metrics make up 50% of his overall target.  An additional 30% is based upon Proprietary GP and 20% Proprietary OCF, which resulted in a payout of 72.6%.  This payout resulted from above-threshold but below target performance on all metrics except Adjusted OCF, which, as mentioned, exceeded target.

Despite considerable improvement on Adjusted OCF performance, our Adjusted Diluted EPS and Adjusted Revenue performance were less favorable than in 2016.  Overall, this resulted in a lower AIP payout in 2017 versus 2016.  As discussed more fully in our 2017 Annual Report, underperformance in EPS, Revenue and Gross Profit was due to lower than expected sales growth in our Proprietary Products segment as customers continued to work down inventory levels purchased in 2016 as well as higher material, labor and overhead costs.  Additionally, as noted above, TSR underperformed in 2017.

The financial results and consequent lesser payouts demonstrate our pay-for-performance philosophy discussed in the “Compensation Discussion and Analysis” below.  A reconciliation of each of the metrics to the amounts reported under U.S. Generally Accepted Accounting Principles (“GAAP”) is provided under “Financial Measures and Adjustments” on page 58.

2017 AIP Performance Against Corporate Metrics

Threshold, Target and Actual Performance

Corporate Metrics

(Applicable to All NEOs)

Adjusted Diluted EPS

Adjusted Revenue

Adjusted OCF

(millions)

(millions)

Global Operations Metric

(Applicable to Mr. Montecalvo only)

Proprietary Gross Profit

Proprietary OCF

(millions)

(millions)

2017 Long-Term Incentive Awards (Equity)

Long-term incentive compensation opportunities for our executives, including the NEOs, are entirely equity based.  Executives receive an award of PSUs and time-vested stock options, approximately equal in grant date fair value.  The value of each NEO’s long-term grant is determined by the Committee based on its review of peer-group market data, the executive’s roles and responsibilities, his or her impact on our results, and advancement potential.  PSUs entitle the recipient to receive common shares based on achievement of three-year CAGR and ROIC targets.  The following chart shows the performance against target and threshold for the three-year performance period that ended December 31, 2017.

Performance Against Long-Term Metrics (1) — 2015-2017 Performance Periods

CAGR

ROIC


(1)         Calculated at 2017 budgeted foreign exchange translation rates.

Our Compensation Practices

We continue to incorporate leading practices into our compensation programs:

·                  Our compensation philosophy targets total direct compensation of our NEOs at the 50th percentile of our thoughtfully-selected comparator group companies.

·                  We prohibit our officers and directors from hedging, pledging or engaging in any derivatives trading with respect to our common stock.

·                  Our equity incentive plan prohibits the repricing or exchange of awards without shareholder approval.

·                  Dividend equivalent units are paid on equity awards only if the underlying award is earned and vested.

·                  We conduct realizable-pay analyses on our CEO compensation and review tally sheets to provide additional benchmarking information on executive pay.

·                  We require a “double-trigger” feature and have not provided golden parachute excise tax gross-ups in any CIC agreements offered to executives after 2010.

·                  We require our executive officers to meet share-ownership guidelines, and to take a portion of their bonus in shares until their ownership guidelines are met.  The ownership guideline for our CEO is six times base salary and the guideline for our other officers is two times base salary.

·                  The Committee has engaged an independent outside compensation consultant.  See “Role of the Compensation Consultant and Executives.”

·                  The Committee may cancel or recover any cash- or equity-based incentive compensation based on achievement of specified financial results that are the subject of a subsequent restatement.  We intend to seek repayment of any amount determined to have been inappropriately received due to mathematical errors, fraud, misconduct or gross negligence.

·                  We annually review the potential risk associated with our compensation programs.

Compensation Committee Report

The Compensation Committee has reviewed and discussed with Management the “Compensation Discussion and Analysis.”  Based on its review and discussions with Management, the Compensation Committee recommended to the Board, and the Board approved, the inclusion of the “Compensation Discussion and Analysis” in this Proxy Statement and in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Compensation Committee

Douglas A. Michels, Chair

Thomas W. Hofmann

Paolo Pucci

John H. Weiland

Compensation Discussion and Analysis

This section discusses our executive compensation programs for 2017, the compensation decisions made under those programs and the factors that were considered by the Committee in making those decisions.  It focuses on the compensation for each of our NEOs for 2017:

·                  Eric M. Green, President and Chief Executive Officer;

·                  William J. Federici, Senior Vice President, Chief Financial Officer and Treasurer; (1)

·                  Karen A. Flynn, Senior Vice President and Chief Commercial Officer;

·                  George L. Miller, Senior Vice President, General Counsel and Corporate Secretary; and

·                  David A. Montecalvo, Senior Vice President, Global Operations and Supply Chain.


(1)         Mr. Federici was named Treasurer effective January 1, 2017 with the retirement of our previous Treasurer, Michael A. Anderson, on December 31, 2016.  On March 2, 2018, Mr. Federici announced his intention to retire during 2018.

This Compensation Discussion and Analysis is divided into two parts:

Part 1 discusses our 2017 performance, the Committee’s actions in 2017, our compensation practices and the compensation decisions for our NEOs.

Part 2 discusses our compensation framework in more detail, including how we apply our compensation philosophy and determine competitive positioning of our executive compensation and other policies.

Part 1 — 2017 Performance, Compensation Committee Actions, Compensation Practices and Decisions

2017 Performance Overview

Among the accomplishments of our executive team during 2017 were:

·                  Net sales increased by 5.2% (excluding foreign currency effects).

·                  Our 2017 gross profit and consolidated operating profit both increased to record levels.

·                  Full-year Adjusted Diluted EPS was $2.78 as compared to $2.18 in the prior year, representing 28% growth.  For AIP performance measurement purposes, in accordance with the AIP document, the Committee also excluded an unbudgeted $0.44 per share benefit due to an accounting change for stock-based compensation tax benefits and a $0.01 benefit for our unbudgeted share repurchase program.

·                  Contract-Manufactured Products sales increased 12.0% over 2016 on a constant currency basis due primarily to the ramp-up of several new projects in the latter half of 2016.

·                  Opened a new state-of-the-art Research and Development Center in Germany and began moving into our new production facility in Waterford, Ireland, which is scheduled to begin commercial operations in 2018.

·                  Increased quarterly dividend to $0.14 per share.

As discussed in this Proxy Statement, despite these accomplishments, our overall one-year performance during 2017 fell below targeted levels, and payouts under the AIP accordingly were less than 100% of target.  Additionally, our three-year performance was above ROIC target but below our CAGR target, which makes up 50% of our long-term incentive payout, and, therefore, that payout was lower.  Our long-term TSR performance exceeded the average performance of our peer group and the S&P 500.  Our three-year performance exceeded the 84th percentile among our peers while our one-year TSR was less than the median of our peers and the S&P 500.

LTIP participants also share in the stock price increase over the performance period, to the same extent as shareholders.  Therefore, values at the time of payout greatly exceed the original grant date fair values.  These participants also share in the price increase to the same extent as our shareholders, with increasing option values.  We believe both of these features of our long-term incentives reflect our pay-for-performance philosophy and help align management and shareholder objectives. Lastly, annual incentives, which are cash-based, paid out at no more than 83.9% in every case, except Contract-Manufactured Products where business unit revenue and operating profit exceeded targets.

2017 Committee Actions

The Committee regularly evaluates the design and performance of our executive compensation programs to ensure they are operating as intended and consistent with relevant benchmarks and market practices.  The Committee also reviews its compensation philosophy each year.  As a result of these evaluations and reviews, the Committee took the following actions in 2017:

Action

Rationale

Pay-for-Performance Review and Realizable Pay Analysis — Conducted a formal pay-for-performance versus Business Segment Group and realizable pay analysis to ensure alignment with performance.

Provides a complete view of the alignment of compensation and company performance versus our peers and the market.

Performance Goal Difficulty Analysis —Conducted an analysis regarding the difficulty of achievement of performance goals established under the AIP and LTIP.

Provides the Committee with perspective regarding the difficulty of attaining established performance goals, the rigor of the process establishing those goals and the motivational aspects of those awards.

Comparator Groups — Confirmed the criteria for selecting members of the Business Segment and Broad Talent Market Groups. See “Competitive Positioning” below for more information on these groups.

Ensures robust and aligned comparative compensation data for officer positions. The data are used to arrive at coherent and competitive compensation decisions for our CEO and other NEOs.

Annual Incentive Plan Update — Revised Annual Incentive Plan to provide that all metrics, except Adjusted Revenue, were calculated using actual foreign exchange rates instead of budgeted rates.

Further aligns officer’s economic risk with that of shareholders and encourages officers to proactively manage foreign currency risk and network optimization, while continuing to recognize the impact of the global economy on revenue.

Action

Rationale

Revised CIC Agreements — For all CIC agreements entered into after 2010, we revised the agreements to reflect market trends.

Enhancements protect shareholders interests by helping to ensure focus on running the business during periods of uncertainty and creating greater clarity and clarifications for our executives.

Executive Compensation Elements

The following chart summarizes the key features of each element of our executive compensation program: Cash (salary and annual bonus); equity (long-term incentive); retirement, which includes the West Pharmaceutical Services, Inc. Employees’ Retirement Plan (“Retirement Plan”), Supplemental Employee Retirement Plan (“SERP”), 401(k) Plan, and Deferred Compensation for Designated Employees (“Employee Deferred Compensation Plan; and other compensation (perquisites).  Each type is discussed in detail in the remainder of this Compensation Discussion and Analysis, and the accompanying tables.

Element

Type

Key Features

Cash

Salary

· Fixed amount of compensation based on experience, contribution and responsibilities.

· Reviewed annually and adjusted based on market practice, individual performance and contribution, length of service and other internal factors.

Retention Cash

· Attracts and retains top-level talent for our senior positions, when necessary.

· Typically, only used to replace equity or cash compensation foregone from prior employer, facilitating our ability to attract key leadership.

· None granted in 2017.

Annual Incentive Plan

· Performance-based cash awards based on Adjusted Diluted EPS, Adjusted Revenue, Adjusted OCF, Proprietary OCF and Proprietary GP, calculated adjusted for unusual or nonrecurring items.

· Annual awards vary from 0% to 150% of the targeted amount.

[CONTINUED ON NEXT PAGE]

Element

Type

Key Features

Long-Term Incentive Compensation (100% Equity)

Annual PSU Grant
(50% (50% of annual grant datelong-term incentive compensation award fair value)

market value ("FMV"))

·PSUs are settled three years from the grant date based on performancebusiness results over a three-year period.performance period

·

PSUs (inclusive of accrued DEUs) are paid in shares of Company common stock and only upon vesting.vesting

·

The number of shares (inclusive of accrued DEUs) that may be earned over the performance period is based on achievement against target of two equally weighted measures—Sales CAGR and ROIC—and rangescan range from 0% to 200% of the target award.award

Threshold performance required to achieve payment is 70% for each target performance metric

Annual Nonqualified Stock Option Grant
(50% (50% of annual grant value)

long-term incentive compensation award FMV)

·Annual awards vest in four equal annual installments and expire 10 years from the grant date.date

· Options

Option exercise prices must be issued at or in excess ofequal to (or exceed) the closing price on the grant date.date

·

DEUs are not provided on options.options

Time-Vesting Restricted Stock RSUsUnits and Retention Options

· AttractsTypically, only used to attract talented executives who are foregoing compensation from prior employer.employer

·

Provides a retention tool for new executives, provides an immediate ownership stake in the Company and alignment with shareholders through an incentive to increase the stock value.value

· Granted to Mr. Montecalvo in 2017, and awards granted to existing NEOs continued to vest and serve to attract and retain NEOs hired in 2015 and 2016.

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COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

Element
Objective
Type
Key Features
RetirementAttracts and retains executives by providing a level of retirement income and retirement savings in a tax-efficient mannerRetirement Plan

Retirement

Retirement Plan

·Provides retirement income for eligible participants based on years of service and earnings up to U.S. Internal Revenue Code (“Code”("Code") limits.limits

Provides a defined-benefit plan to pre-2017 hires that transitioned to a cash-balance plan formula in 2007, which was frozen in December 2018

Replaced with a non-elective defined contribution amount to our 401(k) Plan in January 2019

Supplemental Executive Retirement Plan, "SERP"

SERP

· ProvidesPreviously provided retirement income, on a nonqualified basis, in excess of Code limits on the same basis as the Retirement Plan.Plan

Eligibility was frozen for the SERP in 2017 and benefit accrual ceased in 2018

401(k) Plan

401(k) Plan

·Qualified 401(k) plan that provides participants the opportunity to defer taxation on a portion of their income, up to Code limits, and receive a matchingmatch of 100% on the first 3% and 50% on the next 2% and, in some cases, a non-elective Company contribution.contribution

Employee Deferred Compensation Plan

·Extends, on a nonqualified basis, the 401(k) plan deferrals in excess of Code limits on the same terms and permits deferral of AIP and LTIP awards.PSU awards

Executives may elect to defer up to 100% of their annual cash compensation

Other CompensationPerquisites and Other Benefits

Rarely provided except in exceptional circumstances due to unique situations

Pay Mix

The chart below illustrates the percentage weighting of each compensation element that comprises the 2019 target TDC for the CEO and the average for the other NEOs.

GRAPHIC

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GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

Factors Used in the Compensation Process

Compensation Committee

SummaryThe Compensation Committee (or the "Committee" in this section of Key 2017 Compensation Decisions

After a thorough reviewthe Proxy Statement) reviews and approves the compensation elements and the compensation targets for each of our pay practices, including benchmarking our process,executive officers. The Committee also makes determinations with respect to the Committee concluded to not make any significant changesAIP as it relates to our compensation structure in lightexecutive officers, including the approval of annual performance goals and subsequent full-year achievement against those goals. It administers all elements of the strong linkage between payCompany's LTI plan, and approves the benefits offered to executive officers. Compensation decisions for the CEO are reviewed and approved by the full Board of Directors.

The Committee uses its judgment in making decisions about individual compensation elements and total compensation for our NEOs. This judgment is informed by competitive market data but primarily is focused on each NEO's performance against his or her individual performance objectives, as well as the Company's overall financial performance and the Company’s positioning relative tofinancial performance of the function or areas of operational responsibility for each NEO.

In making its peers.

The following highlights the Committee’s key NEO compensation decisions, for 2017, as reported in the 2017 Summary Compensation Table on page 45.  The decisions were made after considering inputand with guidance from the Committee’sour independent compensation consultant, Pay Governance, the Committee uses several resources and tools, including competitive market information, compensation trends within our comparator groups, where available, and realizable pay versus performance analysis.

The Committee also reviews "tally sheets" for each of our executive officers as one of the tools to help assess the alignment of NEO pay with our performance and compensation philosophy. The tally sheets include salary, equity and non-equity incentive compensation and the value of compensation that would be paid in various termination scenarios. The tally sheets help the Committee to understand the magnitude and interplay of the various components of our compensation programs.

Finally, the Committee evaluates the Company's compensation programs on an annual basis to ensure that our plans do not induce or encourage excessive risk-taking by participants.

Management

Our CEO (for pay other than his own) and our Chief Human Resources Officer (“CHRO”), Annette F. Favorite.annually review with the Committee the performance of each executive officer and recommend to the Committee annual merit salary adjustments and any changes in annual or long-term incentive opportunities or payouts for these officers, except for the CEO. The Committee considers Management's recommendations along with data and recommendations presented by Pay Governance.

The CHRO serves as the liaison between the Committee and Pay Governance, providing internal data on an as needed basis so that Pay Governance can produce comparative analyses for the Committee. In addition, the Company's Human Resources, Finance and Law Departments support the work of the Committee by providing information, answering questions and responding to various requests of Committee members as required.

CEOIndependent Compensation Consultant

The Committee has engaged Pay Governance as its independent consultant to assist the Committee in evaluating the executive compensation program. The consultant provides no services to us other than advice to the Committee on executive compensation matters (including CIC matters) and to our Nominating and Corporate Governance Committee on director compensation. In 2019, the Committee reaffirmed Pay Governance to be independent from the Company under the applicable NYSE and SEC regulations.

Mr. Green’s 2017During 2019, Pay Governance performed the following tasks for the Committee:

    Provided competitive market data for the compensation of the executive officer group and provided input to the Committee regarding officer pay elements were evaluated afterrecommendations (including the CEO)

    Assessed incentive plan performance difficulty and provided related context regarding performance metric selection

    Updated the Committee on executive compensation trends and regulatory developments

    Prepared a realizable pay analysis for the CEO

    Assisted with the Company's review of CEO realizable payour comparator groups

    Provided input on compensation program design and pay-for-performance materials preparedphilosophy

    Monitored trends and distributed by Pay Governance.  The materialsanalysis in executive and equity compensation

    Conducted a comprehensive broad-based review of our compensation practices

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examined realizable payTable of Contents

COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

External Benchmarking

In support of our compensation philosophy, we reference the median compensation values of two compensation comparator groups, which we refer to as the "Business Segment Group" and performance as compared to our peer groups and realized pay (actual compensation received including stock option exercises and stock vesting) versus pay opportunity.  Performance was compared tothe "Broad Talent Market Group." Data from both the Business Segment Group approved in 2016.  The Committee concluded that our aggregate performance(which generally is applicable to the CEO and CEO pay were aligned on a one-year and three-year basis.  Our strong stock price growth was another indicator showing strong linkage between pay and performance.

The Committee held an executive session with Pay Governance and Ms. Favorite, during which Mr. Green’s current year performance and objective attainment were reviewed and discussed.  The Committee’s assessment of Mr. Green’s performance was favorable as he had demonstrated progress in attainment of financial, operational, commercial, human resources and  personal goals.

Additionally, the Committee considered, and discussed extensively with Pay Governance, the position of Mr. Green’s compensation in the market.  All of Mr. Green’s compensation elements (salary, short-term incentives and long-term incentives), compared to both our revamped Business SegmentCFO) and Broad Talent Market Groups were foundGroup are used to be below the 25th percentile, Mr. Green’s base salarydetermine competitive pay practices for our CEO and total cash consideration (“TCC”), which is the sum of his base salary and AIP target, were 15% (Business Segment) and 13% (Broad Talent Market) below the 50th percentile.  Additionally, Mr. Green’s Total Direct Compensation (“TDC”), which is the sum of his TCC and long-term incentive opportunity, was approximately 25% to 34% below the median of our comparator groups.

executive officers in a wholistic manner.

The Business Segment Group is composed of public companies with operational and customer characteristics like our own business operations. These companies initially are identified by Pay Governance and then approved by the Committee reaffirmed its goal to pay compensation at the median level and continue to increase Mr. Green’s pay to that levelwith input from his 2015 appointment, while continually assessing his performance.  Therefore,Management based on the Company’s strong performancefollowing criteria: (1) size (approximately one-half to two times our annual sales); (2) industry (healthcare equipment/supplies, industrial manufacturing and Mr. Green’s relatively low pay,life sciences tools/services); and (3) operating structure such as:

    Global footprint with multi-plant manufacturing capabilities

    Similar raw materials and products (elastomers, plastics, metals), and similar intellectual property profile

    Similar customer characteristics (complex sales cycle, quality requirements, regulatory requirements)

The Broad Talent Market Group is a larger and broader sampling of size-appropriate companies that participate in the Willis Towers Watson annual executive compensation database. Unlike the Business Segment Group, the Committee agreed to make a significant increase in his pay for 2017.

Because the Committee strongly believes a significant portion of Mr. Green’s pay should be performance based, and should focus on long-term objectives, the increases to incentive pay were greater than the increase in base salary.  The Committee approved a 9.7% increase in salary from $775,000 to $850,000 and an increase in long-term incentive opportunity from $2,000,000 to $3,000,000, which is a 50% increase.  The Committee also increased his short-term cash incentive opportunity from 100% of base salary to 105% of base salary.  When coupled with his salary increase, the increase in short-term opportunity was 15.2%.  The larger increase for incentives will drive a healthy pay mix weighted towards long-term goals, which most closely aligns with our shareholders and locks in his commitment to growing shareholder value.

Based on Pay Governance data, these changes will bring Mr. Green’s TDC and TCC between the 25th and 50th percentile of both of our comparator groups.

Compensation of Other NEOs

The Committee approved salaries and set incentive-compensation targetsdoes not select individual members of the other NEOs taking into account the CEO’s and CHRO’s recommendations, the advice of Pay Governance, comparator group data, relative duties and responsibilities, advancement potential and impact on our financial and strategic performance.

Upon reviewing the data, Mr. Federici was close to the 50th percentile of both comparator groups from a TCC (8 to 14% above) and TDC (ranging from 1% above to 12% below) perspective.  Given our strong performance and Mr. Federici’s long-service as a high performing CFO, these findings were consistent with the Committee’s expectations.  Therefore, the Committee approved a 3% increase in base salary and no changes to short-term or long-term incentives which were both increased in 2016.

With regard to Ms. Flynn, Management discussed with the Committee her superior performance during the transition of the Company from a product-led organization to a market-led organization.  Based on her long track record of success, her sponsorship of several important initiatives and her compensation’s position in the market, the Committee agreed with Management’s

recommendation and approved a 6.7% increase in base salary.  Her pay mix was deemed to be appropriate and competitive and, therefore, was not adjusted.  However, the Committee approved an additional one-time $300,000 increase in her long-term incentive grant date fair value from $700,000 to $1,000,000 for her 2017 award.  The additional long-term incentive opportunity is subject to the same terms and conditions that apply to the annual LTIP awards.

Mr. Miller’s pay was assessed against both our Business Segment and Broad Talent Market Group. His TCC was found to be close toCompanies within the market median (6 to 9%) and TDC was slightly above the median (13 to 21%).  Mr. Miller did not receive an increase in May 2016 given his hiring occurred in November 2015.  In recognition of his efforts, experience as a legal executive, and importance in leading the Company into the future, the Committee approved a 3.8% increase in base salary, with no changes to his incentive opportunities, which were found to be appropriate.

Mr. Montecalvo was hired in September 2016 and his pay had been benchmarked on his experience and in a manner consistent with our internal pay structure.  Since his hiring, he took on additional responsibilities for the Supply Chain function and his efforts to reduce costs had already seen progress.  Rather than wait until May 2018 for an increase, the Committee approved a 3% increase in his base salary for 2017.  In accordance with his offer, his LTIP target increased from $300,000 to $400,000 to reflect that he will be present for the entire performance period.

2017 Continuing NEO Base Salaries, Annual Incentive Plan Target,

Long-Term Grant Date Fair Value and Incentive Compensation (1)

Name

 

Salary as of 
1/1/17

 

Salary as of 
12/31/17 (1)

 


Increase

 

AIP 
Target % 
of Salary

 

Approved Long
-Term Grant Date
Fair Value(2)

 

Total Direct 
Compensation(4)

 

TDC 
Percentile (5)

 

Eric M. Green

 

$

775,000

 

$

850,000

 

9.7

%

105

%

$

3,000,000

 

4,742,500

 

27

%

William J. Federici

 

525,000

 

541,000

 

3.0

%

75

%

700,000

 

1,646,000

 

25

%

Karen A. Flynn

 

420,768

 

480,000

 

6.7

%

70

%

1,000,000

(3)

1,816,000

 

65

%

George L. Miller

 

400,000

 

415,000

 

3.8

%

65

%

600,000

 

1,284,750

 

61

%

David A. Montecalvo

 

370,000

 

381,000

 

3.0

%

60

%

400,000

 

1,009,600

 

57

%


(1)         All NEO salary increases for incumbents were effective May 2017.

(2)         These are approved target values.  Actual award values vary due to rounding and share price.

(3)         Includes one-time additional increase of $300,000.

(4)         TDC is base salary plus annual bonus target plus long-term value.

(5)         Both Broad Talent Market Group have annual revenues between 500 million and four billion U.S. Dollars and operate in industries that are similar, but not identical to our own industry. Industries included are: Chemicals and Gases; Electrical and Scientific Equipment and Components; Medical Supplies and Equipment; and, Pharmaceutical and Biotechnology.

Given our size and business portfolio, it is challenging to identify a robust sample of appropriate market compensation peers that fit conventional criteria. Therefore, we believe that using a balance of business and talent market references that reflect companies with which we compete for business and capital, and more broadly, those with which we compete for talent, provides the Committee with decision-quality data and context, and reasonably represents our labor market for executive talent.

Below is a chart that lists each company included in the 2019 Business Segment Group and some key data the Committee considered in making the selection for inclusion. The sales data below are reviewed for all executives, where available.  For purposesgenerally from 2019 public annual reports with respect to each company, with market capitalization data as of this chart, percentagesDecember 31, 2019. All amounts are estimates based on the in millions of U.S. Dollars.


Business Segment Group for

Company
Industry
Sales
Market
Capitalization


AptarGroup, Inc. (ATR)Materials$2,765$7,544
Catalent Inc. (CTLT)Pharmaceuticals$2,463$7,758
CONMED Corporation (CNMD)Healthcare Equipment and Services$860$2,440
The Cooper Companies, Inc. (COO)Healthcare Equipment and Services$2,533$16,275
DENTSPLY SIRONA Inc. (XRAY)Healthcare Equipment and Services$3,986$13,777
Edwards Lifesciences Corp (EW)Healthcare Equipment and Services$3,723$40,289
Gerresheimer AG (GXI.DE)Pharmaceuticals, Biotechnology and Life Sciences$1,549$2,348
Haemonetics Corporation (HAE)Healthcare Equipment and Services$904$6,021
IDEXX Laboratories, Inc. (IDXX)Healthcare Equipment and Services$2,213$23,560
Avanos Medical (AVNS)Healthcare Equipment and Services$687$2,001
Integer Holdings Corp (ITGR)Healthcare Equipment and Services$1,215$2,714
Invacare Corporation (IVC)Healthcare Equipment and Services$972$183
ResMed Inc. (RMD)Healthcare Equipment and Services$2,340$17,217
Steris Plc. (STE)Healthcare Equipment and Services$2,620$12,258
Teleflex Inc (TFX)Healthcare Equipment and Services$2,448$15,449
Varian Medical Systems (VAR)Healthcare Equipment and Services$2,919$12,480
WESTHealthcare Equipment and Services

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GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

Executive Officer Stock Ownership Guidelines

Within five years of appointment, Officers are expected to acquire shares of West common stock with a value equal to the following:

CEOOther NEOs
6 times base salary2 times base salary

In 2019, the Committee reviewed and updated the ownership guidelines to further clarify and align to market practice. The Committee reviewed peer group guidelines and consulted with Pay Governance to identify market practice. The following illustrates the type of equity holdings that count towards stock ownership requirements:

What Counts

What Does Not Count

100% of West shares owned personally or by members of the immediate family sharing the same household

100% of vested shares of West stock held in a qualified or non-qualified deferred compensation plan

60% of unvested RSUs

Unrestricted bonus stock, not a part of matching contributions but subject to matching contribution holding requirements

Unvested stock options and PSUs

Unexercised, vested stock options

Restricted bonus stock subject to matching contribution holding requirements

Until individual share ownership goals are met, executives will receive 25% of their annual bonus in West stock. If after five years the required share ownership has still not been met, the officer must retain 100% of net shares resulting from any equity award vesting or stock option exercise and will have 50% of their annual bonus paid in stock.

As of December 31, 2019, Mr. Green and Mr. Federici.  ForMiller have met their holding requirements. Mr. Birkett, Mr. Montecalvo, and Mr. Abraham have not; however, all are within their 5-year attainment period. Mr. Montecalvo has until 2021 to meet the guidelines, and Mr. Birkett and Mr. Abraham each have until 2023.

Impact of Business Results on our 2019 Incentive Plans

We have designed our compensation programs to align the pay of our senior executives with both short-term and long-term financial results and the performance of our stock. As such, the majority of pay for our CEO and other NEOs the TDC percentile is based upon the Broad Talent Market Group.

Pay Mix

Our compensation philosophyperformance-based and is to put the greatest emphasis on creating long-term shareholder valueimpacted by our financial results and variable pay.  Therefore, the largest percentage of an NEO’s pay is awarded under our LTIP (split equally between options and performance shares).stock price performance. During 2016, 56%2019, 16% of Mr. Green’s TDCGreen's Total Direct Compensation was variable based on short-term business performance and 68% was based on long-term goals and 78% of his TDC was variable.  In 2017, the Committee substantially increased the portion of Mr. Green’s TDC that is based on long-term goals to 63% and the variable portion was increased to 82%.goals. For our other executives, approximately 47%22% of their TDC was variable based on short-term business performance and 44% was based on long-term goals.

Above target achievement of financial metrics for 2019, resulted in a payout greater than 100% for our short-term incentive plan, while below target results from the first two years of our long-term incentive plan generated a payout below 100%.

Our AIP paid out at 123.8% of target for the Corporate plan due to above target achievement in all three metrics, driven primarily by a 11.2% overachievement of the Operating Cash Flow target, and 7.2% overachievement of the EPS target.

Our LTI plan is equally based upon long-term awardson achieving sales CAGR and 68% is variable,ROIC targets. The payout for the 2017-19 performance period was 82.61% as both targets fell short of the target. The sales CAGR for this period achieved 84.9% of the 8.10% target resulting in a 74.8% payout factor, which is slightly higher thanweighted 50% (contributing 37.40% to the payout), and our ROIC for this period achieved 94.3% of the target of 13.4% resulting in 2016.  Consistent with market practices, a larger portion of their pay mix90.42% payout factor, which is salary, but it is still less than one-third of their TDC.also weighted 50% (contributing 45.21% to the payout).

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COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

Our Annual Incentive Compensation Program

Incentive Compensation: Important Facts about our Incentive Targets

Plan Criteria and Rationale

The annual incentives for all AIP participants are based, at leastAs in part, on our financial performance as a whole measured by Adjusted Diluted EPS, Adjusted Revenue and Adjusted OCF. Mr. Montecalvo has two additional metrics based on Proprietary OCF and Proprietary GP.

In 2017, as in pastprevious years, the Committee evaluatedevaluates and decideddecides upon the appropriate AIP financial measures to be considered in determining compensation payouts using the following principles:

    ·       Metrics must support achievement of an annual Board-approved operating plan;

    ·       Metrics must supportAlignment with our growth strategy, supporting profitable growth while preservinggenerating significant cash from operations; and driving long-term value creation for longer-term investment;

    our customers, employees, investors and shareholders·

           Metrics must provide

    Provide a clear line of sight—i.e.,sight to the stated goals of the Company, so that the targets are clearly understood and can be affected by the performance of our executives and employees; and

    employees·

           Metrics should be consistent

    Attainable targets, but with a sufficient degree of "stretch" to support growth

    Consistent with market practice and used within our comparator groups.

    Following this review,

    Currency neutral on sales in order to measure the Committee concluded that the continued useunderlying results of the AIPbusiness and help to ensure business leaders are making decisions that drive long-term sustainable growth rather than addressing short-term currency fluctuations or items impacting comparability

    We make limited adjustments to metrics. At times, adjustments may need to be made when calculating results for awards such as for changes in financial measures supportsaccounting reporting regulations, unexpected changes in costs and other financial implications associated with corporate transactions

We continually test the foregoing principles forrobustness of our incentive targets and performance payout curves. The setting of our performance payout curves considers the following:

    Performance levels necessary to achieve our long-term goals and deliver superior shareholder returns

    The difficulty of achieving various levels of performance based on historical and anticipated future results

    Metrics, program designs and results at companies in our Business Segment Group

    Performance relative to our Business Segment Group and anticipated industry trends

The Committee annually reviews the target setting process to ensure adherence to our principles. This analysis is aided by a retrospective review of our performance compared to that of our competitors and is performed annually by the Board's independent compensation consultant, Pay Governance.

For 2019, we measured the following reasons:key financial metrics:

PlanFinancial MetricRationale
Earnings per ShareA comprehensive measure of income and provides an emphasis on profitable growth while focusing managers on expense control
Consolidated Net SalesProvides a clear line-of-sight target for all members of our executive officer team as we strive to create value by growing our sales
AIPOperating Cash FlowProvides a focus on generating cash in the short term to fund operations, research and capital projects and focuses managers on cash generation
Consolidated Gross ProfitProvides focus on targeting efforts on higher value product growth and improving operating efficiencies in our production facilities
​  
LTI

Sales Compounded Annual Growth RateProvides an objective measure of net sales growth
​​​​​​​​​​​​
​  Return on Invested CapitalDrives efficient and disciplined deployment of capital

·      EPSNote: All metrics are measured at actual foreign currency exchange ("FX") rates except for Consolidated Net Sales, which is a comprehensive measure of income and provides an emphasis on profitable growth while focusing managers on expense control.

·      Consolidated revenue provides a clear line of sight target for all members of our executive officer team as we strivemeasured at budget FX rates to grow our sales to meet increasing demand for our products, particularly high-value products.

·      OCF provides a focus on generating cash in the short term to fund operations, research and capital projects and focuses managers on expense control.

·      For Mr. Montecalvo, who is responsible for Global Operations and Supply Chain, we increased the focus on items under his direct control, with a particular focus on controlling costs.  We also excludedremove the impact of our Contract-Manufactured Productscurrency fluctuations and allow for a year-to-year comparison.

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GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

Our Annual Incentive Compensation

Target Setting

At the beginning of each year, the Committee and the Board review and approve West's annual business objectives and set the metrics and weightings for the annual incentive program to reflect current business priorities. These objectives translate to targets for West and for each business unit for purposes of determining the target funding of the AIP. Performance against business objectives determines the actual total funding pool for the year, which was separately managed in 2017.  The rationalecan vary from 0% to 150% of total target incentives for his additional metrics are:

·                  Proprietary OCF is based solely on the cash generated with respect to our

Proprietary Products (exclusive of Contract-Manufactured Products) and encourages expense control.

·      Proprietary GP creates a greater incentive for operations to reduce costs related to our high value proprietary products, which fuel our profitable growth.

all executives.

Our reported results may be adjusted when comparing to AIP targets for NEOsunusual events outside the control of Management including changes in accounting standards, tax regulations and currency devaluations. We may also exclude certain transactions such as material acquisition or disposition costs including restructuring charges particularly if these items were not included in the performance target. All adjustments are global,reviewed with and approved by the Committee. For 2019, the adjustments made were:

    Net sales are reflected at budgeted foreign currency exchange rates rather than regional, reflectingactual

    Impact due to pension and 401(k) plan reclassification

    Exclusion of:

    Restructuring charges net of sale of building, which impacts EPS and Cash Flow

    Tax law changes and one-time tax recovery

    Argentina currency devaluation

    Share repurchases

    Pension settlement charge

    Impact on Net Sales and EPS due to the growing globalizationacquisition of our business and the expectations of our customers that the Company acts as a single enterprise.  With respect to Global Operations, this structure was recently consolidated under Mr. Montecalvo, and we expect to make further changes to drive network optimization which will be reflected in our 2018 AIP metrics.South Korean distributor

Target Setting

Target Awards

The target annual incentive awards for our NEOs are set as a percentage of base salary. Target awards are reviewed annually to ensure alignment with our compensation philosophy to targetof targeting each compensation element and total direct compensationTDC at the market median.

Variances from this goal are based on an evaluation of competitive market data, internal equity considerations among the CEO’s direct reports and individual performance evaluations.

For 2017, target annual incentive opportunities for the NEOs ranged from 60% to 105% of their year-end base salary rate.performance. Our payout curve is structured to reflect our philosophy that Management should be rewarded for meeting or exceeding goals and with diminished payouts ultimately to zero,should diminish or are withheld when targets are missed.

The formula to determine each NEO's AIP total potential payment is as follows:

GRAPHIC

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COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

The payout factor is a pre-established multiplier that corresponds, on a sliding scale, to the achievement percentage of the AIP target objective so that if actual performance is less than target, the multiplier decreases on a sliding scale based on the achievement percentage and is based on the following chart:

Achievement %

 

Payout factor

  <85%

 

   0.0%

    85%

 

  50.0%

    95%

 

  83.3%

  100%

 

100.0%

  105%

 

116.7%

  110%

 

133.3%

>115%

 

150.0%

Achievement %

Payout factor

<85%0
85%50.0%
95%83.3%
100%100.0%
105%116.7%
110%133.3%
³115%150.0%

Achievement that falls between the threshold and maximum levelsany two achievement percentages is straight-line interpolated.

Financial Results The Committee has discretion to positively or negatively adjust payouts to account for AIP Purposes

exceptional circumstances.

The Committee setreviews the AIP performance targets based on its evaluationscoring, adjustments made thereto and approves the AIP funding level.

Earned incentives paid in 2020 with respect to 2019 results for each metric for our NEOs, all of the 2017 business operating plan and its assessment that the targets contained a sufficient degree of “stretch.”  Our 2017 actual performance level for all Corporate metrics was 92.1% or greater.  Given Ms. Flynn’s position as commercial leader and her responsibilities for Contract-Manufactured Products, her goals were more heavily weighted on Corporate revenue, but the 2017 payout was coincidentally identical.  Payouts were 83.9% for Mr. Green, Mr. Federici, Ms. Flynn and Mr. Miller.  In addition towhom participate in the Corporate metrics Mr. Montecalvo, also has performance goals related to cost control.  These metrics performed at achievement levelsAIP, are shown below:

Plan

Metric


Weight


Target


Performance



% Target
Achieved




%
Payout




Earned
Incentive


Corporate Consolidated Revenue  20.0%$1,805.8 $1,860.2  103.0% 110.0% 123.8%
  EPS  60.0%$2.89 $3.10  107.2% 124.0%   
  Operating Cash Flow  20.0%$332.2 $369.5  111.2% 137.3%   

2020 Annual Meeting and Proxy Statement   |   41


Table of 89.1% and 87.3% respectivelyContents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

Financial Measures and Adjustments

EPS growth for Proprietary GP and Proprietary OCF.  Therefore, his payout was at 72.6%.  This demonstrates our focus and structured link between business alignment, pay and short-term performance.

2017 AIP Corporate

Performance Metrics, Weight, Achievement and Payout Percentages

(all Dollar amounts in Millions except EPS)

 

 

Metric Weight

 

Financial Objectives

 

 

 

 

 

Performance Metric (1)

 

Green, Federici,
& Miller

 

Flynn

 

Montecalvo

 

Threshold

 

Target

 

Maximum

 

Results

 

Achievement
% of Target

 

Payout
Percentage

 

Adj. Diluted EPS (2)

 

60

%

45

%

30

%

$

2.15

 

$

2.53

 

$

2.91

 

$

2.33

 

92.1

%

73.6

%

Adj. Revenue (3)

 

20

%

40

%

10

%

$

1,384.1

 

$

1,628.3

 

$

1,872.5

 

$

1,550.4

 

95.2

%

84.0

%

Adj. OCF (4)

 

20

%

15

%

10

%

$

216.7

 

$

254.9

 

$

293.1

 

$

266.1

 

104.4

%

114.7

%

Proprietary OCF (4)

 

 

 

20

%

$

289.3

 

$

340.3

 

$

391.3

 

$

296.9

 

87.3

%

57.7

%

Proprietary GP (5)

 

 

 

30

%

$

428.5

 

$

504.1

 

$

579.7

 

$

449.0

 

89.1

%

63.7

%


(1)Adjusted measures differpurposes differs from the comparableEPS reported in our Earnings Release under U.S. GAAP measures. See “Financial Measures and Adjustments” on page 58is best explained by reconciling the results used for acalculating AIP payments to U.S. GAAP and the Earnings Release. A reconciliation of the comparablefinancial measures used for the AIP to our Earnings Release financials allows for a meaningful comparison. The following table contains unaudited reconciliations of 2019 U.S. GAAP financial measuresConsolidated Net Sales, OCF and Reported-diluted EPS to the adjusted measures for AIP purposes.

(2)Adjusted Diluted EPS is based on actual foreign exchange rates and excludes restructuring and certain nonrecurring items.

(3)Adjusted Revenue is based on budgeted foreign exchange rates.

(4)Net Sales, Adjusted OCF, and Proprietary OCFAdjusted-diluted EPS for AIP purposes relating to the 2019 AIP Performance Metrics and Achievement Table above. There were no other adjustments.

2019 Consolidated Performance

Reported-diluted EPS(1) $3.21 

Restructuring and related charges

  0.04 

Gain on restructuring-related sale of assets

  (0.02)

Tax recovery

  (0.04)

Pension settlement

  0.04 

Argentina currency devaluation

  0.01 
Adjusted-diluted EPS per Earnings Release $3.24 

Tax Benefit Stock Compensation(2)

  (0.14)
Adjusted-diluted EPS for AIP purposes $3.10 
Operating Cash Flow (in millions) $367.2 

Restructuring & related charges

  2.3 
Adjusted OCF for AIP purposes $369.5 
Consolidated Net Sales (in millions) $1,839.9 

Foreign-exchange impact vs. budget

  23.2 

Impact of South Korea acquisition

  (3.3)
Adjusted Net Sales for AIP purposes $1,859.8 
(1)
A full discussion of components of adjusted-diluted EPS is found in our fourth-quarter and full-year 2019 earnings press release filed on Form 8-K with the SEC on February 13, 2020.

(2)
This item was not included in the budgeted EPS target and are deducted for purposes of comparing actual results to our performance targets for the AIP.

Our Long-Term Equity Incentive Compensation

Target Setting

The targets for West's PSUs are set at the beginning of each three-year performance period, considering West's financial guidance and the annual budget as approved by the Board. At the end of the three-year period, the score is calculated based on actual foreign exchange rates and excludes certain nonrecurring items.  Additionally,results against the Adjusted OCF reflects a reduction of $0.3 million that resulted from a tax rate change that occurred after the Committee approved AIP payouts.  This change was determined to have an immaterial impact on the payouts.  Proprietary OCF does not include OCF from Contract-Manufactured Products.

(5)Proprietary GP is based on actual foreign exchange rates and excludes certain nonrecurring items.

2017 AIP Threshold, Target, Maximum and Actual Payouts and Achievement

Name

 

2017 Target
Award
(% of Base Salary)

 

2017 Threshold
Award (50% of
Target Award)

 

2017 Target
Award (100% of
Target Award)

 

2017 Maximum
Award (150% of
Target Award)

 

2017 Actual
Award

 

Actual
Achievement
% of Target

 

Eric M. Green

 

105

%

$

446,250

 

$

892,500

 

$

1,338,750

 

$

748,808

 

83.9

 

William J. Federici

 

75

%

202,875

 

405,750

 

608,625

 

340,424

 

83.9

 

Karen A. Flynn

 

70

%

168,000

 

336,000

 

504,000

 

281,904

 

83.9

 

George L. Miller

 

65

%

134,875

 

269,750

 

404,625

 

226,320

 

83.9

 

David A. Montecalvo

 

60

%

114,600

 

229,200

 

343,800

 

166,399

 

72.6

 

Our Long-Term Equity Incentive Program

Plan Criteria and Rationale

Long-term compensation for all our executives, including our NEOs, is entirely equity based.  Our long-term awards are structured to align our executives’ interests with those of our shareholders and to emphasize the Committee’s expectation that our executive officers should focus their efforts on growing our business while carefully managing capital.

To help further these objectives, wepredetermined targets equally weighted. We use CAGR and ROIC as theour performance measures for determining PSU payouts. Each metric is weighted equally because we believe sales CAGR and ROIC are equally important in creating shareholder value.value over the long-term.

The metrics, goals and weightings for the performance period 2019-21 are:

2019—21 PSU Performance Period Targets

Metric


Threshold
Target
Maximum

CAGR

4.90%7.00%10.50%

ROIC

9.45%13.5%20.25%

42   |   2020 Annual Meeting and Proxy Statement


Table of Contents

COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

Target Awards

LTI compensation opportunities for our executives, including the NEOs, are entirely equity-based. Each NEO's annual target award is split into two equal amounts, which are then used to determine the number of stock options and PSUs awarded to the executive. The value of each stock option is determined under the Black-Scholes valuation method. The value of each PSU is determined by our stock price at the grant date. The actual or realized value of these awards in future years will vary from this target amount based on share price, ROIC and Sales CAGR performance over time. Please refer to Note 14 of our Annual Report on Form 10-K for a complete discussion of our stock-based compensation.

The use of stock options is intended to align our executives’executives' longer-term interests with those of our shareholders because options deliver value to the executive only when and to the extent that share price exceeds the exercise price of the option. Therefore, options provide a strong performance-based link between shareholder value and executive pay.

Performance Share UnitsPSUs entitle the recipient to receive common shares based on achievement of three-year sales CAGR and ROIC targets, which, if achieved, will have resulted in strong returns for our shareholders.

The value of each NEO's long-term grant is determined by the Committee based on its review of peer-group market data, the executive's role and responsibilities, his or her impact on our results, advancement potential, retention considerations and, in principle, is targeted to the market median.

Performance Share Units

The number of shares that may be earned under the PSUs is based on achievement of sales CAGR and ROIC targets. Each PSU award agreement contains a target payout for the recipient. The number of shares an executive earns at the end of a performance period is calculated by multiplying the target number of PSUs awarded at the beginning of the period times the applicable “payout factor”"payout factor" for each performance metric timesby the weighting for that performance metric.

GRAPHIC

Target PSUs
(i.e., number of shares to be earned if performance equals 100% target)

x

Payout Factor
(based on achievement against CAGR and ROIC targets)

x

Weighting
(50% for each metric)

=

Number of
Shares Earned

Performance
Achievement
(% of Target)



Payout factor
<70%0
70%50%
85%75%
100%100%
110%120%
125%150%
³150%200%

2017 Long-Term Equity Awards

In 2017, LTIP participants, including our NEOs, received a grantThe Committee approves the determination of PSUsactual achievement relative to pre-established targets and a grant of nonqualified stock options.  The total expected grant date fair value was divided equally between the two forms of awards. Expected grant date fair value is the target opportunity valued as the accounting fair value. Actual or realized value of these awards in future years can and will vary from this target opportunity based on share price, ROIC and CAGR performance over time.

The total award value of each NEO was targeted to the market median as represented by comparator group data, as well as relative duties and responsibilities, advancement potential, and each NEO’s impact on our financial results.

The 2017 LTIP grant date fair values are shown in the following table.  The 2017-19 PSU threshold, target and maximum CAGR and ROIC goals immediately follow that table.

2017 Long-Term Equity Award Grant Date Fair Value

Name

 

PSUs (1)
($)

 

Stock Options (2)
($)

 

Total Award Value
($)

 

Eric M. Green

 

1,500,039

 

1,500,071

 

3,000,110

 

William J. Federici

 

349,990

 

350,045

 

700,035

 

Karen A. Flynn

 

500,069

 

499,952

 

1,000,021

 

George L. Miller

 

299,991

 

300,029

 

600,020

 

David A. Montecalvo

 

200,078

 

199,923

 

400,001

 


(1)         The grant date fair valuenumber of PSUs is adjusted up or down from 0% to 200% based on a grant date fair value of $83.47 per share on February 21, 2017 with respectthe approved actual achievement. The Committee reserves the right to all NEOs.  For the assumptions made in determining grant date fair values, refer to Note 12 to the consolidated financial statements included in our 2017 Annual Report.negatively or positively adjust payouts under exceptional circumstances.

(2)

Equity Award Grant Practices         The grant date fair value of options is based on a grant date fair value of $17.94 per share on February 21, 2017 with respect to all NEOs.  For the assumptions made in determining grant date fair values, refer to Note 12 to the consolidated financial statements included in our 2017 Annual Report.

2017-19 Performance Period PSU Award Performance Goals

Metric

 

Threshold

 

Target

 

Maximum

 

ROIC

 

9.38

%

13.40

%

20.10

%

CAGR

 

5.67

%

8.10

%

12.15

%

Equity Award Grant Practices

Under the Committee’sCommittee's equity-based awards policy and procedures, equity awards to NEOs normally are made once per year at the Committee’s meeting in February.year. The Company’sCompany's policy on equity grants contains rules on determining (1) the grant date of equity awards (at least two business days following the release of our annual results for the preceding fiscal year) and (2) the exercise price of stock options granted by the Committee (which must be at least equal to the closing price of our stock on the grant date).  The Committee updated this policy in 2017 to provide that employee interim awards be made on a quarterly basis to reduce the risk

2020 Annual Meeting and Proxy Statement   |   43


Table of awards being made when material, non-public information is available.Contents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

2019 Compensation Decisions

The policy also delegates authority to a Management committee to make a limited number of grants to Management below the officer level in connection with the hiring or promotion of employees or for retention purposes, which may occur throughout the year.  The 2017 changes to the equity grant policy also clarified the award procedures by this committee.

2017 PSU Payouts

The following tables show the performance against targets for the three-year PSU performance period ending December 31, 2017, and the actual award values for each eligible NEO.  Though Mr. Green and Mr. Miller were not employed by us at the beginning of the performance period, they received reduced PSU awards for that period based on their hire dates in 2015, as discussed in our previous proxy statements.  Mr. Montecalvo was hired in September 2016 and did not receive an award with respect to the 2015-17 period.

During the three-year period from 2015-2017, our performance as measured by CAGR did not meet our stretch goals but our ROIC performance exceeded these goals.  In the aggregate,first quarter of each year, the payouts under our long-term plan were slightly less than target at 96.60%. Additionally, participants shared in 96.60% ofCommittee meets to determine CEO and Executive Officers' pay decisions for base salary, AIP and LTI award grants reflecting both prior year performance and appropriate positioning versus the dividend equivalents earned with respect to their PSU awards during the period they were outstanding.representative peer group(s).

However, participants in the long-term plan have shared in the appreciation of our stock price to the same extent as our shareholders over the period and the paid-out values exceed the original grant date fair value.

Full-term participants received a payout of approximately 164% of the original grant date fair value.  This is consistent with our pay-for-performance philosophy as our performance as measured by TSR has been outstanding compared to our Business Segment Group peers over the three-year period with a percentile ranking of 84th.  Additionally, our TSR has outpaced the S&P 500 Index for the same three-year period as noted above.

2015 — 2017 PSU Performance Period Performance/Payout Results

Metric

 

Threshold

 

Target

 

Maximum

 

Result

 

Performance
as % of Target

 

Payout
Factor

 

Weighting

 

Payout as %
of Target

 

ROIC

 

7.70

%

11.00

%

16.50

%

11.64

%

105.8

%

111.64

%

50

%

55.82

%

CAGR

 

5.53

%

7.90

%

11.85

%

7.03

%

89.0

%

81.57

%

50

%

40.78

%

 

 

 

 

 

 

 

 

 

 

Final Payout Result as a % of Target:

 

96.60

%

2015 — 2017 PSU Performance Period Award Payouts by NEO

Name

 

Target Award at
Grant (1)
(#)

 

Target Award

Value at Grant (1)
($)

 

Actual Award
Shares
(#)

 

Actual Award
Value (2)
($)

 

Eric. M. Green

 

14,813

 

849,570

 

14,569

 

1,354,917

 

William J. Federici

 

6,465

 

350,015

 

6,372

 

592,596

 

Karen A. Flynn

 

5,541

 

299,990

 

5,461

 

507,873

 

George L. Miller

 

3,210

 

199,983

 

3,145

 

292,485

 


(1)         Target award is based on achievement of 100% of performance metrics and target value is calculated by multiplying the target award by the closing price of our common stock on the award grant dates for each officer.

(2)         Actual award value using $93.00 per share — the closing price of our common stock on February 13, 2018, the award payout date and includes dividend equivalents accrued with respect to the award, which are paid at the same performance level as the underlying PSU awarded.

Part 2 — Compensation Framework

Compensation Philosophy and Objectives

Our compensation philosophystrategy supports West's business imperatives. It is designed to provide competitive executive pay opportunities tied to ourensure:

    That executives balance short-term and objectives against long-term success.  This overriding pay-for-performance approach enables us topriorities

    Alignment with shareholder interests

    The Company can attract motivate and retain the typeleadership needed to deliver strong results

2019 Compensation Decisions for our CEO

The Chair of executive leadership that will help us achieve ourthe Committee works directly with the Committee's Compensation Consultant to provide a decision-making framework for use by the Committee in determining incentive plan payouts and setting target compensation opportunities for the CEO. This framework considers, among other things:

    Assessment of the CEO's performance against objectives in the prior year, both qualitative and quantitative

    Progress against strategic objectives

    West's total performance over a multi-year period

    Competitive benchmark analysis, and realize increased shareholder value.  To reach theseother relevant information

Mr. Green's overall compensation decisions were made in the context of the Company's financial performance relative to the approved goals, we have adoptedhis continued progression as CEO and the peer group market data.

44   |   2020 Annual Meeting and Proxy Statement


Table of Contents

COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

​  President and Chief Executive Officer: Eric M. Green
In role since April 2015

2019 Performance Highlights

Continued the transformation of the Company to operate as a market-led organization, and spearheaded the globalization and optimization of the Company's operations

Delivered full-year 2019 reported net sales of $1.840 billion, representing growth of 7.1% over the prior year and organic sales growth of 10.0%; and full-year 2019 adjusted-diluted EPS of $3.24, compared to $2.81 in the prior year

Expanded operating cash flow to $367.2 million, representing a 27% increase over 2018 operating cash flow of $288.6 million

Delivered four new product launches and expanded service capabilities to address unmet customer needs

Directed capital investments to deliver additional capacity at current sites to support high-value products in greater demand to drive future growth

Drove geographic expansion in emerging markets with critical acquisitions in South Korea, and the fortification of our strategic partnership with Daikyo Seiko Ltd. (increase to 49% ownership stake)

Invested in senior leader, middle management and high-potential team member trainings to build capabilities and support the growth of the enterprise

2019 Compensation Decisions

Base Salary: The Committee approved an increase in salary from $885,000 to $945,000 (6.8% increase) based upon business performance, targeted market-pay positioning, and the external market data on competitive pay levels provided by Pay Governance

AIP Target Opportunity: 105%, flat from 2017, representing target opportunity of $992,250, which was found to be market-competitive

2019 AIP Payout (paid in February 2020): $1,228,406 representing 123.8% of target. The payout level considered significant progress in the implementation of West's enterprise strategic plan, positive financial performance, and his leadership in the continuing optimization of West's manufacturing facilities footprint. In addition, the Board noted significant personal leadership of the CEO in attracting new executive talent into the Company, developing next generation leaders, and for setting the standards for workplace diversity and inclusion.

LTI Award for 2019–21 Performance Period: $4,200,000 grant date fair value, split 50% stock options and 50% PSUs to align to the market median and drive greater retention value

For 2019, at target, 83% of Mr. Green's pay was at risk and subject to attainment of specific performance goals. With these changes, Mr. Green's annual TDC opportunity increased 15.5%, from $5,314,250 in 2018 to $6,137,250 in 2019, resulting in parity with the market median of the peer group.

2019 NEO Compensation Decisions

The Committee also approved the compensation recommendations put forward by the CEO for the following program objectives:

·                  Have a strong pay-for-performance element with a major portionNEOs, noting overall performance against business objectives in the year, both qualitative and quantitative. The compensation level of executive pay “at risk”each NEO was reviewed based on achievementthe representative peer group and the external survey data. Based on the Committee's targeted pay positioning, the evaluation of financial performance goals.

·                  Support achievement of both operatingeach NEO's performance, and strategic objectives.

·                  Link Management compensation with the interests of shareholders.

·                  Be fair and market-competitive to assure access to needed talent and encourage retention.

·                  Provide compensation opportunities that are consistent with each executive’s responsibilities, experience and performance.

·                  Design compensation incentive programs that promote a sensible risk/reward balance, and that do not encourage unnecessary or unreasonable risk-taking.

·                  Use perquisites sparingly, which has led to the reduction of available perquisites.  The only perquisite available to executives in 2017 was relocation benefits, which generally are available to salaried employeesexternal market data on similar terms.

Competitive Positioning

In support of our compensation philosophy, we target the median compensation values of two compensation comparator groups, which we refer to as the “Business Segment Group” and the “Broad Talent Market Group.”  Data from both the Business Segment Group (where sufficient data are available) and Broad Talent Market Group are used to determine competitive pay practices for all our executive officers in a balanced manner.  Data from the Business Segment Group are used to review compensation design details and make CEO pay-for-performance comparisons.

The Business Segment Group is composed of public companies with operational and customer characteristics similar to our own business operations.  These companies are initially identifiedlevels provided by Pay Governance, the Committee made the following decisions.

2020 Annual Meeting and then approved by theProxy Statement   |   45


Committee with input by Management based on the following criteria: (1) size (approximately one-half to two times our annual revenues); (2) industry (healthcare equipment/supplies, industrial manufacturingTable of Contents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

​  Senior Vice President and Chief Financial Officer: Bernard J. Birkett
Hired June 21, 2018

2019 Performance Highlights

Led strong financial management of business that led to full-year 2019 operating cash flow of $367.2 million, an increase of 27%; strategic investments in capital to drive future growth; and free cash flow of $240.8 million, an increase of over 30%

Developed strong working relationships with the investor community; delivered West business overview presentations at key investor conferences; and hosted investor roadshows at strategic West sites, to provide insight into West's business

Served as key liaison to external auditor, PwC, and to the Audit and Finance Committees ensuring strong working relationships

Co-led effort to increase West's stake in Daikyo Seiko Ltd. from 25% to 49%

Brought new talent to the Finance Team to broaden, deepen and strengthen capabilities and expertise

Educated broad employee base around the business' financial results to boost business acumen and drive disciplined financial management across the enterprise

2019 Compensation Decisions

Base Salary: 3.1% increase, raising base to $567,000 from $550,000

AIP Target Opportunity: 70% of base salary, flat from 2018, representing target opportunity of $396,900

2019 AIP Payout (paid in February 2020): $491,362, representing 123.8% of target

LTI Award for 2019–21 Performance Period: $750,000 grant date fair value, split 50% stock options and 50% PSUs in recognition of full year contribution and as per Mr. Birkett's offer letter.

For 2019, at target, 67% of Mr. Birkett's pay was at risk and subject to attainment of specific performance goals.


​  Senior Vice President, General Counsel and Corporate Secretary: George L. Miller
In role since November 2015

2019 Performance Highlights

Managed contract negotiations on key business deals: increased ownership to 49% of Daikyo Seiko Ltd. and acquisition of South Korean distributor, GIS Korea

Oversaw Enterprise Risk Management Program, aligning Company's crisis management and business continuity plans, and establishing a new team to oversee the program in its entirety

Drove Corporate Responsibility (CR) Program, establishing new goals to align with U.N. Global Compact and U.N. Sustainable Development Goals. CR Program recognized with several industry awards including Investor Business Daily (Best ESG Companies) & Newsweek (Most Responsible Companies), and earning better scores from ratings services, such as Institutional Shareholder Services

Achieved significant improvements in team member safety, establishing the Company's first Safety Week and driving safety culture with broad employee engagement initiatives

Managed the Company's Intellectual Property strategy, adding new attorneys to the team, and securing more than 150 patents in 2019

2019 Compensation Decisions

Base Salary: 2.8% increase, raising base to $440,000 from $428,000

AIP Target Opportunity: 65% of base salary, flat from 2018, representing a target opportunity of $286,000

2019 AIP Payout (paid in February 2020): $354,068 representing 123.8% of target

LTI Award for the 2019–21 Performance Period: $600,000 grant date fair value award—flat from 2018 and split 50% stock options and 50% PSUs. Starting with 2019 LTI awards, the Committee defined "qualifying retirement" for Mr. Miller, as earning five years of service. Qualifying retirement for LTI awards permits recipients, including Mr. Miller, to continue to vest and stock options will retain the original expiration date provided he remains employed through October 1 of the year of grant. This revised definition does not apply to his LTI awards made prior to 2019. This decision was made in consideration for Mr. Miller's overall experience including his pre-West service and significant contributions to West.

For 2019, at target, 67% of Mr. Miller's pay was at risk and subject to attainment of specific performance goals.

46   |   2020 Annual Meeting and life sciences tools/services); and (3) operating structure such as:Proxy Statement


·                  global footprint with multi-plant manufacturing capabilities,

·                  similar raw materials and products (elastomers, plastics, metals), and similar intellectual property profile; and

·                  similar customer characteristics (complex sales cycle, quality requirements, regulatory requirements).

The Broad Talent Market Group is a larger and broader sampling of size-appropriate companies that participate in the Willis Towers Watson annual executive compensation database. Unlike the Business Segment Group, the Compensation Committee does not select individual members of the Broad Talent Market Group.  Rather, the Committee evaluates and selects objective criteria and relies upon the companies that participate in the Willis Towers Watson survey, which change annually.  Therefore, the individual companies comprising the survey data are not considered by the Committee, and the Committee does not consider the identity of these companies to be material.

Companies within the Broad Talent Market Group have annual revenues between 500 million and four billion U.S. Dollars and operate in industries that are similar, but not identical to our own industry.  Industries included are: Chemicals and Gases; Electrical and Scientific Equipment and Components; Medical Supplies and Equipment; Pharmaceutical and Biotechnology.

Generally, the Broad Talent Market Group approximates the markets in which we compete for talent or where the talent available would have similar characteristics to our own.  This group provides us with an additional consistent set of market data for all our executive positions, representing a sample of companies with which we broadly compete for talent.  It is an additional comparator group for our CEO and CFO and, generally, the main comparator group for our other officer positions.  The companies in the Broad Talent Market Group can change each year based on survey participation, and, if the Compensation Committee deems necessary, due to changes in the applicable criteria.

Given our size and business portfolio, it is challenging to identify a robust sample of appropriate market compensation peers that fit conventional criteria; there is no company that matches ours completely.  We believe that using a balance of business and talent market references that reflect companies with which we compete for business and capital, and more broadly, those with which we compete for talent, provides the Committee with decision-quality data and context, and reasonably represents our labor market for executive talent.

This multi-group, talent and business-oriented approach has met our historic needs and provides a broad context for evaluating compensation levels and practices.  The Committee annually evaluates and, when it deems appropriate, updates the composition of both comparator groups to ensure the representative companies reflect (1) our changing enterprise strategy, (2) the markets in which we compete for business, including emerging or more technical markets, (3) the areas in which we compete for talent and the characteristics we expect from the talent we are seeking as we build a more robust market-led organization, and (4) our increasing size, complexity and the globalization and harmonization of our business processes.

We last updated our comparator groups in 2016 resulting in the inclusion of Catalent, Inc., Halyard Health, Inc. and Teleflex Incorporated in the Business Segment Group for setting of compensation and pay-for-performance practices after October 2016.  No changes were made in 2017.

Below is a chart that lists each company included in the Business Segment Group and some key data the Committee considered in making the selection for inclusion.  The data below are from recently available public filings with respect to each company.  All amounts in U.S. Dollars are in millions.

Table of Contents

COMPENSATION DISCUSSION AND ANALYSISBusiness Segment GroupGRAPHIC

Company (Ticker)

 

Industry

 

FY 2016
Revenue

 

% of Non-U.S. Revenue

 

Market
Capitalization

 

Aptar Group, Inc (ATR)

 

Materials

 

$

2,331

 

73

%

$

5,385

 

C.R. Bard, Inc (BCR)*

 

Healthcare Equipment and Services

 

$

3,714

 

31

%

$

22,667

 

Catalent, Inc. (CTLT)

 

Pharmaceuticals

 

$

1,848

 

54

%

$

4,546

 

CONMED Corporation (CNMD)

 

Healthcare Equipment and Services

 

$

764

 

37

%

$

1,447

 

The Cooper Companies Inc. (COO)

 

Healthcare Equipment and Services

 

$

1,967

 

42

%

$

10,756

 

DENTSPLY SIRONA Inc (XRAY)

 

Healthcare Equipment and Services

 

$

3,745

 

63

%

$

14,684

 

Edwards Lifesciences Corp (EW)

 

Healthcare Equipment and Services

 

$

2,964

 

45

%

$

24,627

 

Gerresheimer AG (ETR: GXI)

 

Pharmaceuticals, Biotechnology and Life Sciences

 

$

1,454

 

74

%

$

2,685

 

Haemonetics Corporation (HAE)

 

Healthcare Equipment and Services

 

$

909

 

43

%

$

2,201

 

Halyard Health, Inc. (HYH)

 

Healthcare Equipment and Services

 

$

1,592

 

25

%

$

1,725

 

IDEXX Laboratories (IDXX)

 

Healthcare Equipment and Services

 

$

1,775

 

20

%

$

14,827

 

Integer Holdings Corporation (ITGR)

 

Healthcare Equipment and Services

 

$

1,387

 

42

%

$

1,302

 

Invacare Corporation (IVC)

 

Healthcare Equipment and Services

 

$

1,047

 

56

%

$

470

 

ResMed, Inc (RMD)

 

Healthcare Equipment and Services

 

$

1,839

 

0

%

$

10,197

 

Steris Plc (STE)

 

Healthcare Equipment and Services

 

$

2,233

 

26

%

$

6,739

 

Teleflex Inc (TFX)

 

Healthcare Equipment and Services

 

$

1,868

 

45

%

$

9,182

 

Varian Medical Systems, Inc (VAR)

 

Healthcare Equipment and Services

 

$

3,218

 

51

%

$

9,249

 

 

 

 

 

 

 

 

 

 

 

 

 

WEST

 

Healthcare Equipment and Services

 

$

1,509

 

54

%

$

7,274

 



​  Senior Vice President and Chief Operations and Supply Chain Officer: David A. Montecalvo
In role since September 2016

2019 Performance Highlights

Delivered Global Operations and Supply Chain plan which saw significant improvements in safety for team members (15% improvement); continuous improvement in quality and service metrics for customers; and exceeded cost reduction objectives

Delivered 2019 consolidated gross margin expansion of 110 basis points.

Achieved Contract Manufactured-Products market unit gross margin of 14.8% and developed a plan to continue further margin expansion for this market unit in 2020

Successful implementation of site consolidation plan from 28 plants to 25 at 2019 year-end

Initiated the modernization of the Company's manufacturing practices across the enterprise to incorporate more automation and digital technologies, which will fuel future growth

Executed a company-wide Lean Training Program that led to significant savings and is driving more collaborative, consistent and efficient working practices across the enterprise

2019 Compensation Decisions

Base Salary: 4.9% increase, raising base to $425,000 from $405,000

AIP Target Opportunity: 65% of base salary, flat from 2018, representing a target opportunity of $276,250

2019 AIP Payout (paid in February 2020): $341,998 representing 123.8% of target

LTI Award for the 2019–21 Performance Period: $400,000 grant date fair value award—flat from 2017 and split 50% stock options and 50% PSUs

For 2019, at target, 65% of Mr. Montecalvo's pay was at risk and subject to attainment of specific performance goals.

*C.R. Bard was acquired by Becton, Dickinson

​  Senior Vice President, Chief Digital and Transformation Officer: Silji Abraham
Hired February 26, 2018

2019 Performance Highlights

Executed West's digital transformation across three key pillars: external experience, internal experience and the digitization of our products

Improved the external experience for customers with improvements to our e-commerce and knowledge center offerings, leading to a 22% increase in traffic to our website

Upgrading all of West's internal systems to drive more consistent and effective management of business—achieving cost savings while delivering an enhanced internal experience for our team members

Partnered with Research & Development and Operations to add digital tools and capabilities to improve business performance of products and manufacturing processes to better serve customers

Opened West's first Digital Technology Center in Bangalore to undertake digitization across internal and external experiences and product platforms in a sustainable manner, hired more than 200 people to staff the new site

Enhanced enterprise cybersecurity infrastructure and programming to better manage risk

2019 Compensation Decisions

Base Salary: $410,000

AIP Target Opportunity: 65% of base salary, prorated based on Mr. Abraham's period of employment in 2018

2019 AIP Payout (paid in February 2020): $340,388 representing 123.8% of target when accounting for proration and adjusted 115% to reflect performance during the year. The adjustment reflects Mr. Abraham's success in quickly developing and executing a strategy for the digitization of West during his short tenure and significantly reducing the function's operating expense

LTI Award for the 2019–21 Performance Period: $400,000, split 50% stock options and 50% PSUs as provided to other recently hired officers and required to off-set loss of equity from previous employer

For 2019, at target, 62% of Mr. Abraham's pay was at risk and subject to attainment of specific performance goals.

2020 Annual Meeting and Company December 2017.Proxy Statement   |   47


Setting Targets and Performance Goals

The Committee annually reviews the total compensation of each executive officer—i.e., cash compensation (salary and target annual incentive opportunity) and long-term equity compensation (target long-term equity value).

The Committee, with input from its independent compensation consultant, then sets the executive’s compensation target for the current year.  Adjustments may be made to short- or long-term incentive award opportunities.  Salary adjustments, if any, have typically become effective annually in May or upon a promotion.  The compensation decision for the CEO is reviewed with and ratified by the independent directors in executive session.

In making its decisions, the Committee uses several resources and tools, including competitive market information, compensation trends within the comparator groups, realizable pay versus performance and the larger executive compensation environment.

The Committee also reviews “tally sheets” for each of our executive officers as one of the tools to help assess the alignment of their pay with our performance and compensation philosophy.  The tally sheets include salary, equity and non-equity incentive compensation, perquisites and the value of compensation that would be paid in various termination scenarios.  The tally sheets help the Committee understand the different components of our compensation programs and the interrelationship of these amounts.

For 2017, the Committee set target levels for the financial objectives used in the AIP and for PSU awards and concluded that there was an appropriate correlation between payout (at target, threshold and maximum) and target performance levels in light of the business environment and risks associated with achieving our five-year

strategic plan.  Additionally, in recognitionTable of our shift from a product-led organization to a market-led organization beginning in 2016, the growth ratesContents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

​  Former Senior Vice President and Chief Commercial Officer: Karen A. Flynn
In role since February 2016; Retired December 2019

2019 Performance Highlights

In December 2019, Ms. Flynn announced her retirement from West effective as of December 31, 2019 after more than 26 years with West. Having led the business through an extraordinary period of growth, she stepped down at a time when the organization is strong and poised for the future. As a result of her retirement, we appointed two internal candidates to lead two distinct components of the Commercial organization: Commercial Products & Emerging Markets and Global Market Units & Commercial Solutions. This new organizational structure will allow more focus and enable us to continue to grow our business in the future.

Prior to her announced retirement, Ms. Flynn delivered on full-year 2019 net sales growth of 6.9% for the Proprietary Products Business Unit and helped to generate double-digit organic sales growth of High Value Products and full-year 2019 net sales growth of 7.9% for our Contract-Manufactured Products Segment. This performance was taken into consideration while setting her 2019 compensation.

2019 Compensation Decisions

Base Salary: 2.0% increase, raising base to $505,000 from $495,000

AIP Target Opportunity: 70% of base salary, flat from 2017, representing target opportunity of $353,500

2019 AIP Payout (paid in February 2020): $437,633 representing 123.8% of target

LTI Award for 2019–21 Performance Period: $700,000 grant date fair value, flat from 2016 and split 50% stock options and 50% PSUs

For 2019, at target, 68% of Ms. Flynn's pay was at risk and subject to attainment of specific performance goals.

Given Ms. Flynn's qualifying retirement from West and per the terms of our retirement plan, Ms. Flynn maintains the full vesting terms of all previous vested awards and unvested awards continue to vest as per the terms of the award agreement.

48   |   2020 Annual Meeting and profit margins were calibrated against the projected growth rates in the budget for our three market units (Biologics, Generics, and Pharma) to the global pharmaceutical injectable drug unit data from health service data company, IQVIA (formerly Quintiles/IMS).  The targets selected by the Committee exceeded this average growth data by more than 200%.Proxy Statement


During 2017, the Committee again conducted a retrospective look at the difficultyTable of attaining the performance goals established under the long-term and short-term incentive plans.  This analysis concluded that the goals were very challenging versus our Business Segment Group and the historic payouts demonstrated a robust qualitative goal-setting process, which has resulted in a strong pay-for-performance link.Contents

COMPENSATION DISCUSSION AND ANALYSISGRAPHIC

Other Compensation Practices

Realizable Pay Analysis

The Committee works with Pay Governance to review realizable pay granted to the CEO.  Realizable pay is calculated using actual bonuses earned, end of period stock values and in-the-money value of stock options granted during the year.  It takes a retrospective look at pay versus performance.  The analysis showed that there was a high correlation between the realizable pay earned by our CEO and the Company’s performance as measured by TSR, CAGR, ROIC and similar financial metrics compared to other members in our Business Segment Group.  The Committee determined this analysis confirmed its pay-for-performance philosophy.

Evaluating Individual Performance

The Committee uses its judgment in making decisions about individual compensation elements and total compensation for our NEOs, with a focus on individual performance and competitive market data.  The Committee also considers each NEO’s performance against his or her individual performance objectives, as well as the Company’s overall financial performance and the financial performance of the function or areas of operational responsibility for each NEO.

Post-Employment Compensation Arrangements

During 2019, NEOs hired on or before January 1, 2017 all NEOs(Mr. Green, Ms. Flynn, Mr. Miller and Mr. Montecalvo) participated in our defined benefit retirement plan and all NEOs were eligible to participate in our defined contribution retirement programsplan for U.S.-basedall employees. In addition to the standard benefits available to all eligible U.S.-based employees, we maintain nonqualified retirement plans in which these executives participate.

participate in the same capacity as eligible salaried employees.

All tax-qualified defined benefit plans have a maximum compensation limit and a maximum annual benefit, which limits the benefit to participants whose compensation exceeds these limits. The nonqualified retirement plans offered by the Company provide benefits to key salaried employees, including each NEO, using the same benefit formulas as the tax-qualified plans but without regard to the compensation limits and maximum benefit accruals for tax-qualified plans.

We also provide our NEOs with benefits upon termination in various circumstances, as described under “Estimated"Estimated Payments Following Termination”Termination" and “Payments"Payments on Termination in Connection with a Change-in-Control”Change-in-Control" sections below.

We believe that our existing arrangements help executives remain focused on our business in the event of a threat or occurrence of a CICchange in control and encourage them to act in the best interests of the shareholders in assessing and implementing a transaction. With regard to Mr. Green's severance arrangement, we believe severance pay is necessary to attract and retain a quality CEO candidate and that the benefits of securing a release of claims, cooperation and non-disparagement provision from Mr. Green upon an involuntary termination are significant.

Beginning withThe Company's CIC agreements entered into after 2010, the Company eliminateddo not include excise tax gross-ups and single-triggers under these typeswhere benefits would be paid without a termination of agreements.  Therefore, only Mr. Federici’s pre-2010 agreement includes an excise tax gross-up and permits payment in the event of voluntary

termination without good reason.  All otheremployment. Additionally, our CIC agreements include a cutback in payments and benefits if the NEO would be in a more favorable after-tax position and provide that no benefits are payable upon a voluntary resignation that is not due to “good"good reason.

In 2017, the Compensation Committee, the Nominating and Corporate Governance Committee, Management and Pay Governance, collectively reviewed our standard CIC Agreements, to make sure that the agreements were sufficiently clear and gave appropriate incentives for officers to focus on the business during a potential period of transition and uncertainty.

The revised CIC agreements, include the following changes: (1) a new definition of “Cause” that will not result in the payment of severance benefits following a termination, (2) clarifications to the definition of “Good Reason” that would result in severance benefits being provided following a CIC, (3) the bonus used to calculate severance will be based upon target instead of the prior three years’ payouts, (4) clarifications regarding payment of incentive compensation and performance-based equity awards, (5) removal of an offset for retirement benefit value, and (6) reduction of the provision of benefits from 36 months to 24 months.  Furthermore, in conjunction with these changes, the noncompete associated with a termination following a CIC was extended from one year to two years and a requirement was added to execute a release in favor of the Company.

"

Mr. Green has a separate employment agreement that contains many provisions similar provisions to those contained in the CIC,form of Change in Control Agreement for other officers, but also includes other terms and conditions that resultresulted from negotiation and tradeoffsnegotiations relating to compensation and termination.  Based on these factors and the fact that Mr. Green’s contract term is subject to renewal in 2018 and again 2020, the Committee did not revise his agreement, but will continue to review.

Additionally, given the benefits provided to Mr. Federici under his pre-2010 agreement and applicable tax law, the Committee similarly determined that it was in the Company’s best interests not to revise his CIC Agreement.

The terms and conditions of all these agreements are described in more detail below.in the Compensation Tables section of this Proxy Statement.

Personal Benefits

Other Compensation PoliciesThe benefits provided to our NEOs are generally the same as or consistent with those provided to our other salaried employees. However, upon hire, Mr. Birkett, an Irish citizen, was provided tax planning and preparation reimbursement up to $15,000 per year (not subject to gross-up). This was due to a unique challenge regarding his change from an expatriate package at his prior employer to a local hire at West as well as complications due to the relocation of a non-U.S. citizen.

Retention Cash

Occasionally, the Committee pays signing and retention bonuses in cash. These bonuses may have repayment obligations. The primary purpose of these payments is to replace equity or cash payments granted by a new officer’sofficer will forfeit from his/her former employer and to serve as a retention mechanism for new officers.upon joining West.

Realizable Pay Analysis

Share-Ownership Requirements

Share-ownership goals further align an executive’s interests with those of our shareholders and encourage a long-term focus.  Within five years of attaining their position, all executive officers must acquire shares of common stock with a value equal to designated multiples of their base salary.  The Committee established a goal of six-times base salary forworks with Pay Governance to review pay granted and realizable by the CEO in the context of West's performance. Realizable pay is calculated using actual bonuses earned, end of period stock values and two-times base salary for allin-the-money value of stock options granted during the year. It takes a retrospective look at pay versus performance. The analysis showed that there was a high correlation between the realizable pay earned by our CEO and the Company's performance as measured by total shareholder return, sales CAGR, ROIC and similar financial metrics compared to other executive officers.

Until the share ownership goals are reached, executives are required to receive 25% of their annual bonus in shares.  All NEOs currently meet or exceed the stock ownership guidelines except Mr. Green, Mr. Miller and Mr. Montecalvo.  These three NEOs each have several more years to reach the required minimum holding requirement.  Therefore, until the goals are met, at least 25% of their bonuses will be paid in stock.

We have benchmarked our share ownership requirements against the companiesmembers in our Business Segment Group. Our requirements are generally at least as robust as those of our peers.

Policy on Hedging and Pledging

We prohibit directors, officers and employees from engaging in hedging or monetization transactions, such as zero-cost collars and forward sale contracts, which would allow them to continue to own our common stock, but

without the full risks and rewards of ownership.  We also prohibit directors, NEOs and other senior employees from engaging in pledging, short sales or other short-position transactions in our common stock.

Personal Benefits

The benefits provided to our NEOs are generally the same as orCommittee determined this analysis is consistent with those provided toits pay-for-performance philosophy and that our other salaried employees.  We believe these benefitsincentive plans are reasonable and competitive so that we may attract and retain talented employees.  In total, these benefits represent a small percentage of each NEO’s overall compensation, and the Committee has reduced or eliminated in recent years many of the benefits that are not provided to our employees more broadly.operating as intended.

We provide a relocation benefit to all our salaried employees who relocate at the request of the Company.  This benefit is intended to attract and retain employees by providing them with assistance during the moving process.

Risk Considerations in Our Compensation Programs

The Committee, in consultation with our internal auditor and our independent compensation consultant, has reviewed our compensation policies and practices for our officers and employees and concluded that any risks arising from these policies and

2020 Annual Meeting and Proxy Statement   |   49


Table of Contents

GRAPHIC COMPENSATION DISCUSSION AND ANALYSIS

programs are not reasonably likely to have a material adverse effect on the Company. The Committee believes that the mix and design of the elements of our compensation program are appropriate and encourage executive officers and key employees to strive to achieve goals that benefit the Company and our shareholders over the long term.

Our compensation policies and procedures are applied uniformly to all eligible participants. By targeting both company-wide and business-unit performance goals in our annual bonus plans and long-term compensation, we believe we have allocated our compensation between base salary and short- and long-term target opportunities in a way that does not encourage excessive risk-taking by our employees.

Policy on Hedging and Pledging

RoleWe prohibit directors, officers and employees from engaging in hedging or monetization transactions, such as zero-cost collars and forward sale contracts, which would allow them to continue to own our common stock, but without the full risks and rewards of Consultant and Management in Setting Compensation

The Committee approves all compensation decisions for ourownership. We also prohibit directors, NEOs including CEO compensation after the Committee consults with all independent directors in executive session.

The Committee has engaged Pay Governance as its independent consultant to assist the Committee in evaluating our executive compensation. During 2017, Pay Governance performed the following tasks for the Committee:

·      Prepared competitive market data for the compensation of the executive officer group and provided input to the Committee regarding officer pay recommendations (including the CEO);

·      Prepared analysis of existing compensation and recommendations related to the compensation to be paid to executive officers hired in 2017;

·      Assessed performance goal and metrics difficulty;

·      Reviewed share utilization, dilution and overhang issues;

·      Updated the Committee on executive compensation trends and regulatory developments;

·      Prepared a realizable pay analysis for the CEO;

·      Assisted with the Company’s review of our comparator groups; and

·      Provided input on compensation program design, tally sheets and philosophy and incentive-pay mix.

The consultant provides no services to us other than advice to the Committee on executive compensation matters and to our Nominating and Corporate Governance Committee on director compensation and change-in-control matters.  The Compensation Committee determined Pay Governance to be independent from the Company under the NYSE and SEC regulations.

Our CEO and CHRO annually review the performance of each executive officer.  They then recommend annual merit salary adjustments and any changes in annual or long-term incentive opportunities or payouts for these officers.  The Committee considers Management’s recommendations in addition to data and recommendations presented by Pay Governance.

The CEO and other members of Management also work with the Committee and its consultantsenior employees from engaging in determining the companies to be includedpledging, short sales or other short-position transactions in the Broad Talent Market and Business Segment Groups.our common stock.

Impact of Tax and Accounting Treatment

The Compensation Committee selects compensation vehicles that will, in its view, create the best link between pay and performance. Generally, the accounting and tax treatments of executive compensation has not been a significant factor in the Compensation Committee’sCommittee's decisions regarding the amounts or types of compensation paid. Our programs have been designed where appropriate and consistent with our compensatory goals to maximize deductibility under applicable tax law.law unless it conflicts with our compensatory goals. The Committee also considers the impact of changes to accounting regulations and tax law, such as the Tax CutsCut and Jobs Act of 2017, when reviewing elements of compensation, including equity and other performance-based awards.

50   |   2020 Annual Meeting and Proxy Statement


Table of Contents

COMPENSATION TABLESCompensation TablesGRAPHIC

Compensation Tables

The following tables, narrative and footnotes discuss the compensation of the NEOs during 2017.2019.

2017 Summary Compensation Table

Name and Principal
Position

 

Year

 

Salary
($)

 

Bonus
($)

 

Stock Awards
($)

 

Option
Awards
($)

 

Non-Equity
Incentive Plan
Compensation
($)

 

Change in
 Pension Value
and
Nonqualified
Deferred
Compensation
Earnings (1)
($)

 

All Other
Compensation
($)

 

Total
($)

 

Eric M. Green (2)
President & Chief
Executive Officer

 

2017
2016
2015

 

824,038 749,039 473,846

 



616,667

 

1,526,814 1,026,285 3,174,950

 

1,500,071 1,000,020 3,175,106

 

748,808
738,575
614,259

 

95,660
70,066
42,927

 

61,172
64,142
267,697

 

4,756,563 3,648,127 8,365,452

 

William J. Federici
Sr. VP, Chief Financial
Officer & Treasurer

 

2017
2016
2015

 

535,462 517,264 515,483

 



 

349,990 350,027 350,015

 

350,045 350,005 350,006

 

340,424
375,244
447,210

 

270,150
249,457
119,960

 

31,333
21,616
24,388

 

1,877,404 1,863,613 1,807,062

 

Karen A. Flynn
Sr. VP & Chief
Commercial Officer

 

2017
2016
2015

 

469,615 439,881 425,526

 



 

500,069 350,027 312,512

 

499,952 350,005 326,744

 

281,904
309,960
359,630

 

112,801
91,642
19,334

 

38,306
27,162
33,191

 

1,902,647 1,568,677 1,476,937

 

George L. Miller (3)
Sr. VP, General Counsel &
Corporate Secretary

 

2017
2016
2015

 

409,808 400,000 41,538

 



66,667

 

356,496 299,989 700,065

 

300,029 300,011 299,988

 

226,320
247,780

 

47,280
27,468
2,769

 

27,753
239,945
13,403

 

1,367,686 1,515,193 1,124,430

 

David A. Montecalvo
Sr. VP, Global Operations
& Supply Chain

 

2017

 

377,846

 

 

202,251

 

199,923

 

166,399

 

27,403

 

140,522

 

1,114,344

 


2019 Summary Compensation Table

Name and Principal Position

Year

Salary ($)

Bonus(1) ($)

Stock
Awards ($)




Option
Awards ($)


Non-Equity
Incentive Plan
Compensation ($)








Change in Pension
Value & Nonqualified
Deferred
Compensation
Earnings(2) ($)







All Other
Compensation


Total
Eric M. Green 2019 935,769  2,100,020  2,100,017 1,228,406  51,963  117,513 6,533,687
President & Chief Executive 2018 879,615  1,776,454  1,750,014 865,132  64,977  42,621 5,378,813
Officer 2017 824,038  1,526,814  1,500,071 748,808  95,660  61,172 4,756,563
Bernard J. Birkett 2019 564,385 91,667 383,257 375,003 491,362  35,208 1,940,882
SVP, CFO & 2018 279,231 $390,000 1,312,465 312,529 190,511  319,060 2,803,795
Treasurer Finance                  
George L. Miller(3) 2019 438,154  351,848  300,002 354,068  5,444  42,906 1,492,422
Sr VP General Counsel 2018 426,000  351,916  299,968 256,222  47,499  24,844 1,406,449
& Corporate Secretary 2017 409,808  356,496  300,029 226,320  47,280  27,753 1,367,686
Silji Abraham 2019 421,000  240,645 200,002 340,388  35,104 1,237,139
SVP & Chief Digital 2018 339,038 $68,333 599,972 199,985 241,552  42,640 1,491,520
& Transf Officer                  
David A. Montecalvo 2019 421,923  211,244  200,002 341,998  10,591  37,728 1,223,485
SVP Global Operations 2018 401,461  407,135  400,037 264,290  30,296  16,392 1,519,612
& Supple Chain 2017 377,846  202,251  199,923 166,399  27,403  140,522 1,114,344
Karen A. Flynn(4) 2019 503,462  350,072 350,003 437,633 102,936 45,264 1,789,369
Former SVP & Chief 2018 492,692  350,044 350,003 260,014 16,029 28,446 1,497,228
Commercial Officer 2017 469,615  500,069 499,952 281,904 112,801 38,306 1,902,647
(1)
This amount for 2019 represents a lump-sum relocation allowance for Mr. Birkett. These amounts in 2018 represent a sign-on cash bonus paid to Mr. Birkett upon hire and a lump-sum relocation allowance for Mr. Abraham.

(2)
These amounts are an estimate of the increase in actuarial present value of each of our NEOs’ age-65NEO's age 65 accrued benefit under our retirement plans for 2017.2019. Amounts are payable only when a participant’sparticipant's employment terminates and may be reduced if benefits are commenced prior to retirement.age 65. Assumptions underlying the estimates are described under the 20172019 Pension Benefits Table.

(3)
Mr. Miller was not a NEO in 2018 however his 2018 compensation is reflected above per SEC guidelines.

(4)
Ms. Flynn retired effective 12/31/2019. Due to Ms. Flynn's retirement and other compensation factors, we have decided to optionally include six NEOs for 2020. In future years, we may include fewer NEOs as permitted by applicable SEC rules.

2020 Annual Meeting and Proxy Statement   |   51


(2)Table of Contents

GRAPHIC      2015 reflects partial year of compensation based on Mr. Green’s hire date of April 24, 2015.COMPENSATION TABLES

Stock Awards

(3)
2015 reflects partial year of compensation based on Mr. Miller’s hire date of November 19, 2015.

Stock Awards

Stock Awards Grant Date Fair Value (Target) 2015-20172017-19

 

 

2017

 

2016

 

2015

 

 

 

PSU
Awards

 

Incentive
Shares

 

PSU
Awards

 

Incentive
Shares

 

PSU
Awards

 

Incentive
Shares

 

Restricted
Stock

 

Name

 

($)

 

($)

 

($)

 

($)

 

($)

 

($)

 

($)

 

Eric M. Green

 

1,500,039

 

26,774

 

999,984

 

26,301

 

1,424,918

 

 

1,750,032

 

William J. Federici

 

349,990

 

 

350,027

 

 

350,015

 

 

 

Karen A. Flynn

 

500,069

 

 

350,027

 

 

299,990

 

12,522

 

 

George L. Miller

 

299,991

 

56,505

 

299,989

 

 

300,037

 

 

400,028

 

David A. Montecalvo

 

200,078

 

2,173

 

 

 

 

 

 

 2019
2018
2017
Name
PSU Awards
($)


Incentive
Shares ($)


PSU Awards
($)


Incentive
Shares ($)


RSU Awards
($)


PSU Awards
($)


Incentive
Shares ($)
Eric M. Green$2,100,020$1,750,042$26,412$1,500,039$26,774
Bernard J. Birkett$375,084$8,173$312,549$999,915
George L. Miller$300,047$300,115$0$0$299,991$56,505
Silji Abraham$200,100$40,545$199,991$399,981
David A. Montecalvo$200,100$11,145$399,974$7,161$200,078$2,173
Karen A. Flynn$350,072$350,044$500,069

PSU and Incentive Share terms and conditions are described in the “Compensation"Compensation Discussion and Analysis”Analysis" section of this Proxy Statement. Each share is valued as of the grant date. The table below shows the maximum payout for PSU awards made in 2017, 20162019, 2018 and 2015.2017.


Stock Awards PSU Grant Date Maximum Value 2015-20172017-19

Name
2019 ($)
2018 ($)
2017 ($)
Eric M. Green4,200,0403,500,0833,000,078
Bernard J. Birkett750,168625,098
George L. Miller600,094600,229599,982
Silji Abraham400,199399,981
David A. Montecalvo400,199799,947400,155
Karen A. Flynn700,143700,0881,000,138

52   |   2020 Annual Meeting and Proxy Statement


 

 

2017

 

2016

 

2015

 

Name

 

($)

 

($)

 

($)

 

Eric M. Green

 

3,000,078

 

1,999,968

 

2,849,836

 

William J. Federici

 

699,979

 

700,010

 

700,030

 

Karen A. Flynn

 

1,000,138

 

700,010

 

599,980

 

George L. Miller

 

599,982

 

599,978

 

600,074

 

David A. Montecalvo

 

400,155

 

 

 

Option Awards

Table of Contents

COMPENSATION TABLESGRAPHIC

Option Awards

The amounts in the “Option Awards”"Option Awards" column reflect the grant date fair value in each year, computed according to FASB ASC Topic 718. We use the Black-Scholes option pricing model to calculate grant date fair value based on the following assumptions for the named recipients:


Option Awards FASB ASC Topic 718

 

 

February 21,
2017

 

September 26,
2016

 

February 23,
2016

 

November 19,
2015

 

October 20,
2015

 

April 24,
2015

 

February 23,
2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected Life (Years)

 

5.9

 

5.9

 

5.9

 

5.8

 

5.8

 

5.8

 

5.8

 

Risk-Free Interest Rate

 

2.05

%

1.25

%

1.35

%

1.79

%

1.54

%

1.46

%

1.66

%

Dividend Yield

 

0.72

%

0.70

%

0.94

%

0.88

%

0.97

%

0.92

%

0.96

%

Expected Volatility

 

19.9

%

19.6

%

20.4

%

20.3

%

20.1

%

19.2

%

19.1

%

Black-Scholes Value

 

$

17.94

 

$

13.89

 

$

11.53

 

$

12.72

 

$

10.70

 

$

10.65

 

$

10.19

 

Recipients

 

All

 

Montecalvo

 

Green Federici Flynn
Miller

 

Miller

 

Flynn

 

Green

 

Federici Flynn

 

 
Feb 19, 2019

Jun 21, 2018

Feb 26, 2018

Feb 20, 2018

Feb 21, 2017

Expected Life (Years)

  5.6  5.6  5.6  5.6  5.9 

Rick-Free Interest Rate

 2.34% 2.63% 2.64% 2.68% 2.05% 

Dividend Yield

  0.66%  0.89%  0.74%  0.71%  0.72% 

Expected Volatility

 22.46% 20.71% 19.69% 19.69% 19.90% 

Black-Scholes Value

  $24.51  $22.51  $19.01  $19.95  $17.94 

Recipients

 All NEOs Birkett Abraham 


Green
Montecalvo
Miller
Flynn



 



Green
Montecalvo
Miller
Flynn



 

For a more detailed discussion of the assumptions used to calculate grant date fair value for our options, refer to Note 1214 to the consolidated financial statements included in our 20172019 Annual Report.

Non-Equity Incentive Plan Compensation

Non-Equity Incentive Plan Compensation

The amounts in the “Non-Equity"Non-Equity Incentive Plan Compensation”Compensation" column are AIP awards made with respect to 20172019 performance. AIP awards are paid in cash, except participants may elect to have up to 100% paid in Company common stock on a pre-tax or after-tax basis.

Mr. FedericiGreen, Mr. Miller, and Ms. Flynn each elected to havereceive their awards paid in cash.

Mr. GreenBirkett, Mr. Abraham and Mr. Montecalvo all elected to receive 25% of histheir after-tax bonus award in stock. This resulted in a grant of 1,137Mr. Birkett, Mr. Abraham, and Mr. Montecalvo received 541, 370, and 373 shares of stock, with a grant-date fair value of $105,741respectively based on a per-share grantpurchase price of $93.00 on February 13, 2018.  Mr. Green also received a grant of 284 shares of restricted incentive shares, with a grant date fair value of $26,412.$156.49.

Mr. Miller elected to defer 100% of his total award to our Employee Deferred Compensation Plan2020 Annual Meeting and have it deemed invested in stock with a 25% matching contribution in restricted incentive stock units.  This election resulted in a grant of 2,228 stock units to Mr. Miller, with a total grant date fair value of $207,204.  Mr. Miller was also credited with 557 restricted incentive stock units with a grant date fair value of $51,801.

Mr. Montecalvo elected to receive 25% of his after-tax bonus award in stock.  This resulted in a grant of 309 shares of stock, with a grant-date fair value of $28,737.  Mr. Montecalvo also received a grant of 77 shares of restricted incentive shares, with a grant date fair value of $7,161.

The values of these shares are not included in this column, but will be included in our 2019 Proxy Statement   in the “Stock Awards” column, and, if deferred, will also be reflected in next year’s “Nonqualified Deferred Compensation Table.”|   53


All Other Compensation

Table of Contents

GRAPHIC COMPENSATION TABLES

All Other Compensation

The amounts in the “All"All Other Compensation”Compensation" column consist of: (1) for all NEOs, the total of the Company matching contributions made in 20172019 on cash deferrals to the Employee Deferred Compensation Plan and 401(k) plan;plan and any non-elective contributions made on behalf of employees who exceed the applicable Code limits; (2) Company-paid life insurance premiums; (3) DEUs credited in 20172019 on unearned PSUs (assuming a 100% performance level) and unvested time-vesting restricted stock or RSUs, whether or not those awards have been deferred; and (4) reimbursementreimbursements for tax assistance services included in Mr. Birkett's offer of relocation expenses.

employment; no amounts were grossed up for taxes.

The table below shows a breakdown of the total amount shown in the “All"All Other Compensation”Compensation" column of the 20172019 Summary Compensation Table.


Components of All Other Compensation — 2017Compensation—2019

Name


Defined Contribution
Plan Company
Contributions ($)



Life
Insurance
($)



Dividends &
Dividend
Equivalents ($)



Other

Total ($)

Eric M. Green

65,22754651,740-0-117,513

Bernard J. Birkett

19,6005463,95011,11235,208

George L. Miller

32,11546710,324-0-42,906

Silji Abraham

31,0774483,579-0-35,104

David A. Montecalvo

31,7864425,499-0-37,728

Karen A. Flynn

34,10454110,619-0-45,264

54   |   2020 Annual Meeting and Proxy Statement


Name

 

Defined Contribution
Plan Company
Contributions
($)

 

Life
Insurance
($)

 

Dividends &
Dividend
Equivalents
($)

 

Relocation
Expenses
($)

 

Total
($)

 

Eric M. Green

 

10,800

 

504

 

49,868

 

-0-

 

61,172

 

William J. Federici

 

10,800

 

504

 

20,029

 

-0-

 

31,333

 

Karen A. Flynn

 

18,784

 

454

 

19,068

 

-0-

 

38,306

 

George L. Miller

 

16,392

 

403

 

10,958

 

-0-

 

27,753

 

David A. Montecalvo

 

6,679

 

373

 

2,567

 

130,903

 

140,522

 

2017 GrantsTable of Plan-Based Awards TableContents

COMPENSATION TABLESGRAPHIC

2019 Grants of Plan-Based Awards Table

The following table provides information on stock options and PSUs granted to our NEOs in 2017.

 

 

 

 

Estimated Future Payouts Under Non-
Equity Incentive Plan Awards (1)

 

Estimated Future Payouts
Under Equity
Incentive Plan Awards (2)

 

All Other
Stock Awards:
Number
of
Stock or

 

All Other
Option
Awards:
Number of
Securities
Underlying

 

Exercise
or Base
Price
of
Option

 

Grant Date
Fair Value of
Stock
And Option

 

Name

 

Grant
Date

 

Threshold
($)

 

Target
($)

 

Maximum
($)

 

Threshold
(#)

 

Target
(#)

 

Maximum
(#)

 

Units (3)
(#)

 

Options
(#)

 

Awards
($/Sh)

 

Awards (4)
($)

 

Eric M. Green

 

02/21/17

 

446,250

 

892,500

 

1,338,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

02/21/17

 

 

 

 

 

 

 

8,986

 

17,971

 

35,942

 

 

 

 

 

 

 

1,500,039

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

308

 

 

 

 

 

26,774

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83,616

 

83.47

 

1,500,071

 

William J. Federici

 

02/21/17

 

202,875

 

405,750

 

608,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

02/21/17

 

 

 

 

 

 

 

2,097

 

4,193

 

8,386

 

 

 

 

 

 

 

349,990

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,512

 

83.47

 

350,045

 

Karen A. Flynn

 

02/21/17

 

168,000

 

336,000

 

504,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

02/21/17

 

 

 

 

 

 

 

2,996

 

5,991

 

11,982

 

 

 

 

 

 

 

500,069

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,868

 

83.47

 

499,952

 

George L. Miller

 

02/21/17

 

138,125

 

276,250

 

414,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

02/21/17

 

 

 

 

 

 

 

1,797

 

3,594

 

7,188

 

 

 

 

 

 

 

299,991

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

650

 

 

 

 

 

56,505

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,724

 

83.47

 

300,029

 

David A. Montecalvo

 

02/21/17

 

114,300

 

228,600

 

342,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

02/21/17

 

 

 

 

 

 

 

1,199

 

2,397

 

4,794

 

 

 

 

 

 

 

200,078

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

25

 

 

 

 

 

2,173

 

 

 

02/21/17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,144

 

83.47

 

199,923

 

2019.


Estimated Future Payout
Under Non-Equity Incentive Plan
Awards (AIP)(1)



Estimated Future Payout
Under Equity Incentive
Plan Awards( 2)



All Other
Stock
Awards:
Number of
Stock or





All Other
Options
Awards:
Number of
Securities
Underlying






Exercise
or Base
Price of
Option




Grant
Date
Fair
Value of
Stock and
Option






Name


Grant Date
Threshold
($)


Target
($)


Maximum
($)


Threshold
(#)


Target
(#)


Maximum
(#)


Units
(#)(3)


Options
(#)


Awards
($/sh)


Awards
($)(4)


Eric M. Green

2/19/2019496,125992,2501,488,375       

2/19/2019   10,24320,48640,972   2,100,020

2/19/2019       85,680102.512,100,017

Bernard J. Birkett

2/19/2019198,450396,900595,350

2/19/20191,8303,6597,318375,084

3/1/2019778,173

2/19/201915,300102.51375,003

George L. Miller

2/19/2019143,000286,000429,000       

2/19/2019   1,4642,9275,854   300,047

2/19/2019       12,240102.51300,002

Silji Abraham

2/19/2019137,475274,950412,425

2/19/20199761,9523,904200,100

3/1/201938240,545

2/19/20198,160102.51200,002

David A. Montecalvo

2/19/2019138,125276,250414,375       

2/19/2019   9761,9523,904   200,100

3/1/2019      105  11,145

2/19/2019       8,160102.51200,002

Karen A. Flynn

2/19/2019176,750353,500530,250

2/19/20191,7083,4156,830350,072

2/19/201914,280102.51350,003
(1)
These amounts represent the minimum, target and maximum awards under the AIP. The amounts are not reduced to reflect any elections to defer receipt of an executive’sexecutive's cash bonus or bonus shares under any deferred compensation plan.

(2)
These amounts represent PSUs that may vest depending on attainment of performance targets over a three-year performance period. The amounts in this column are not reduced to reflect any elections to defer receipt of an executive’sexecutive's PSUs under any deferred compensation plan.

(3)
The restricted stockRSUs listed in this column vestsrepresent incentive shares vesting 100% after four years or pro rata 25% per year in the event of death, disability or retirement.years. The grant date of thesethe incentive shares was February 14, 2017, when theMarch 1, 2019, with a grant date fair value was $86.93of $106.14 per share.

(4)
This column consists of the fair value of options and stock awards granted during 2017.2019. The per-option grant date fair value (under FASB ASC Topic 718) was $17.94$24.51 for all options and $83.47$102.51 per share for all PSUs granted on February 21, 2017.19, 2019. For the assumptions made in determining grant date fair values, refer to Note 1214 to the consolidated financial statements included in our 20172019 Annual Report.

2020 Annual Meeting and Proxy Statement   |   55


Outstanding Equity Awards at Year-End 2017Table of Contents

GRAPHIC COMPENSATION TABLES

Outstanding Equity Awards at Year-End 2019

The following table contains information on the current holdings of stock options, unearned PSUs, RSUs and restricted stock held by our NEOs on December 31, 2017.

 

 

 

 

Option Awards (1)

 

Stock Awards

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted Stock/RSUs (2)

 

PSUs (3)
Equity Incentive Plan Awards

 

Name

 

Grant Date

 

Number of
Securities
Underlying
Unexercised
Options

Exercisable
(#)

 

Number of
Securities
Underlying
Unexercised
Options

Unexercisable
(#)

 

Option
Exercise
Price

($)

 

Option
Expiration
Date

 

Number of
Shares or
Units of
Stock That
Have Not
Vested

(#)

 

Market
Value of
Shares or
Units of
Stock That
Have Not
Vested

($)

 

Number of
Unearned
Shares, Units or
Other Rights
That Have Not
Vested

(#)

 

Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
Have Not Vested

($)

 

Eric M. Green (4)

 

 

 

 

 

 

 

 

 

 

 

31,248

 

3,009,336

 

50,159

 

4,748,553

 

Hire Grant 1

 

4/24/2015

 

 

 

164,320

 

57.38

 

4/24/2025

 

 

 

 

 

 

 

 

 

Hire Grant 2

 

4/24/2015

 

40,497

 

13,499

 

57.38

 

4/24/2025

 

 

 

 

 

 

 

 

 

Hire Grant 3

 

4/24/2015

 

39,908

 

39,908

 

57.38

 

4/24/2025

 

 

 

 

 

 

 

 

 

 

 

2/23/2016

 

21,683

 

65,049

 

59.64

 

2/23/2026

 

 

 

 

 

 

 

 

 

 

 

2/21/2017

 

 

 

83,616

 

83.47

 

2/21/2027

 

 

 

 

 

 

 

 

 

William J. Federici

 

 

 

 

 

 

 

 

 

 

 

-0-

 

-0-

 

31,217

 

2,955,313

 

 

 

2/24/2009

 

52,000

 

 

 

16.05

 

2/24/2019

 

 

 

 

 

 

 

 

 

 

 

3/22/2010

 

75,662

 

 

 

21.34

 

3/22/2020

 

 

 

 

 

 

 

 

 

 

 

2/22/2011

 

68,494

 

 

 

20.43

 

2/22/2021

 

 

 

 

 

 

 

 

 

 

 

2/21/2012

 

81,968

 

 

 

21.22

 

2/21/2022

 

 

 

 

 

 

 

 

 

 

 

2/19/2013

 

57,068

 

 

 

29.56

 

2/19/2023

 

 

 

 

 

 

 

 

 

 

 

3/26/2013

 

4,036

 

 

 

32.19

 

3/26/2023

 

 

 

 

 

 

 

 

 

 

 

2/24/2014

 

25,314

 

8,437

 

47.34

 

2/24/2024

 

 

 

 

 

 

 

 

 

 

 

2/23/2015

 

17,174

 

17,174

 

54.14

 

2/23/2025

 

 

 

 

 

 

 

 

 

 

 

2/23/2016

 

7,589

 

22,767

 

59.64

 

2/23/2026

 

 

 

 

 

 

 

 

 

 

 

2/21/2017

 

0

 

19,512

 

83.47

 

2/21/2027

 

 

 

 

 

 

 

 

 

Karen A. Flynn

 

 

 

 

 

 

 

 

 

 

 

453

 

44,698

 

17,632

 

1,669,221

 

 

 

2/21/2012

 

9,458

 

 

 

21.22

 

2/21/2022

 

 

 

 

 

 

 

 

 

 

 

7/24/2012

 

31,982

 

 

 

25.15

 

7/24/2022

 

 

 

 

 

 

 

 

 

 

 

2/19/2013

 

26,338

 

 

 

29.56

 

2/19/2023

 

 

 

 

 

 

 

 

 

 

 

2/24/2014

 

10,849

 

3,616

 

47.34

 

2/24/2024

 

 

 

 

 

 

 

 

 

 

 

9/29/2014

 

11,646

 

3,882

 

44.95

 

9/29/2024

 

 

 

 

 

 

 

 

 

 

 

2/23/2015

 

14,720

 

14,720

 

54.14

 

2/23/2025

 

 

 

 

 

 

 

 

 

 

 

10/20/2015

 

1,250

 

1,250

 

55.42

 

10/20/2025

 

 

 

 

 

 

 

 

 

 

 

2/23/2016

 

7,589

 

22,767

 

59.64

 

2/23/2026

 

 

 

 

 

 

 

 

 

 

 

2/21/2017

 

0

 

27,868

 

83.47

 

2/21/2027

 

 

 

 

 

 

 

 

 

George L. Miller (5)

 

 

 

 

 

 

 

 

 

 

 

7,071

 

544,693

 

11,982

 

1,134,336

 

Hire Grant 1

 

11/19/2015

 

5,895

 

1,965

 

62.30

 

11/19/2025

 

 

 

 

 

 

 

 

 

Hire Grant 2

 

11/19/2015

 

7,862

 

7,862

 

62.30

 

11/19/2025

 

 

 

 

 

 

 

 

 

 

 

2/23/2016

 

6,505

 

19,515

 

59.64

 

2/23/2026

 

 

 

 

 

 

 

 

 

 

 

2/21/2017

 

0

 

16,724

 

83.47

 

2/21/2027

 

 

 

 

 

 

 

 

 

David A. Montecalvo (6)

 

 

 

 

 

 

 

 

 

 

 

1,418

 

139,914

 

4,523

 

428,192

 

Hire Grant

 

9/26/2016

 

2,698

 

8,094

 

71.79

 

9/26/2026

 

 

 

 

 

 

 

 

 

 

 

2/21/2017

 

 

 

11,144

 

83.47

 

2/21/2027

 

 

 

 

 

 

 

 

 

2019.


Option Awards(1)

Stock Awards

     Restricted Stock/RSUs(2)

Bonus Incentive Awards(3)

PSUs(4)—Equity Incentive Plan Awards

Name

Grant Date
Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#)







Number of
Securities
Underlying
Unexercised
Options
UnExercisable
(#)







Option
Exercise
Price ($)



Option
Expiration
Date



Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)







Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)








Number of
Bonus
Incentive
Shares or
Units That
Have Not
Vested
(#)








Market
Value or
Payout
Value of
Unearned
Shares or
Units or
Other Rights
That Have
Not
Vested
($)












Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)







Market
Value or
Payout
Value of
Unearned
Shares or
Units or
Other Rights
That Have
Not Vested
($)











Eric M. Green(5)

     13,4592,023,2511,045157,02158,4958,793,534

Hire Grant 1

4/24/201593,89770,42357.384/24/2025      

Hire Grant 2

4/24/201553,996 57.384/24/2025      

Hire Grant 3

4/24/201579,816 57.384/24/2025      

2/23/201665,04921,68359.642/23/2026      

2/21/201741,80841,80883.472/21/2027      

2/20/201821,93065,79089.642/20/2028      

2/19/2019 85,680102.512/19/2029      

Bernard J. Birkett(6)

7,4871,125,4857711,6156,7921,020,997

6/21/20183,47110,413100.926/21/2028

2/19/201915,300102.512/19/2029

George L. Miller(7)

       -0--0-9,9631,497,723

Hire Grant 1

11/19/201515,724 62.3011/19/2025      

Hire Grant 2

11/19/20157,860 62.3011/19/2025      

2/23/201619,5156,50559.642/23/2026      

2/21/20178,3628,36283.472/21/2027      

2/20/20183,75911,27789.642/20/2028      

2/19/2019 12,240102.512/19/2029      

Silji Abraham(8)

3,120469,06538357,6224,299646,242

2/26/20182,6307,89086.242/26/2028

2/19/20198,160102.512/19/2029

David A. Montecalvo(9)

     1,418213,21520831,3228,8941,337,032

9/26/20168,0942,69871.799/26/2026      

2/21/20175,5725,57283.472/21/2027      

2/20/20185,01315,03989.642/20/2028      

2/19/2019 8,160102.512/19/2029      

Karen A. Flynn

-0--0-13,4472,021,524

7/24/201220,98225.157/24/2022

2/19/201326,33829.562/19/2023

2/24/201414,46547.342/24/2024

9/29/201415,52844.959/29/2024

2/23/201529,44054.142/23/2025

10/20/20152,50055.4210/20/2025

2/23/201622,7677,58959.642/23/2026

2/21/20179,7569,75683.472/21/2027

2/21/20174,1784,17883.472/21/2027

2/20/20184,38613,15889.642/20/2028

2/19/2019014,280102.512/19/2029
(1)
All options are exercisable in 25% annual increments beginning one year from the grant date, except as noted in footnote 45 for Mr. Green and footnote 59 for Mr. Miller, and footnote 6 for Mr. Montecalvo.



(2)In addition to the retention restricted stock and
RSUs granted to Mr. Green, Mr. MillerBirkett, Mr. Abraham and Mr. Montecalvo upon hire. Vesting of awards for Mr. Green, Mr. Birkett, Mr. Abraham and Mr. Montecalvo are discussed in footnotes 4, 5, 6, 8 and 6, respectively, this column9 respectively. All RSUs granted also includesearn DEUs, which are subject to the same vesting schedule as the underlying RSU.

(3)
Bonus Incentive Awards are time-vesting restricted incentive shares granted when ana NEO elects to receive a portion of his or her bonus in stock, whether or not the bonus is deferred under the Employee Deferred Compensation Plan. The restricted incentive shares were granted on February 18, 2014 (Ms. Flynn), February 17, 2015 (Ms. Flynn), February 23, 2016 (Mr. Green) and, February 14, 2017 (Mr. Green Mr. Miller and Mr. Montecalvo) and February 20, 2018 (Mr. Green and Mr. Montecalvo) and March 1, 2019 (Mr. Birkett, Mr. Abraham, Mr. Montecalvo), in each case, are 100% vested four years from the grant date if the bonus share to which the incentive share relates has not been sold and the employee has not terminated employment. The incentive shares will also vest 25% per year upon retirement, but no NEO who currently has outstanding incentive shares is yet eligible to retire. Unvested incentive shares are forfeited on employment termination. Dividends are paid on all unvested restricted shares

56   |   2020 Annual Meeting and Proxy Statement


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COMPENSATION TABLESGRAPHIC

    and reinvested as additional stock subject to the same vesting requirements as the underlying shares.  DEUs are credited with respect to RSUs in the same manner and subject to the same restrictions, as well. The market value of all restricted shares and RSUs is based on the closing price of our common stock on December 29, 201731, 2019 of $98.67.$150.33.

    (3)

(4)
Except as noted for Mr. Green, Mr. MillerBirkett and Mr. Montecalvo,Abraham, who received some PSUs on their hire dates, these PSUs were awarded on February 23, 2015, February 23, 201621, 2017 and February 21, 201720, 2018 and February 19, 2019 and each covers a three-year performance period.  Mr. Green and Mr. Miller’s PSUs were granted on their respective hire dates. Mr. Montecalvo did not receive a PSU related to the 2015-17 performance period, but did receive an award with respect to the 2016-18 performance period on his hire date.  This table includes as outstanding the 2015-172017-19 PSUs awards that were distributed in February 2018,2020, because the performance is not actually determined and certified by the Committee until the first quarter of 2018.2020. The 20162018 and 20172019 awards will be earned (if at all) on December 31, 20182020 and December 31, 2019,2021, respectively, subject to the satisfaction of the applicable performance criteria and generally subject to the recipient’srecipient's continued employment through those dates. As required by the SEC’sSEC's disclosure rules, because the performance for the most recently completed fiscal year was less than 100%, the number of PSUs shown assumes that a target payout of 100% will be achieved for all three awards. Fair market value of the unearned PSUs is based on the closing price of our common stock on December 29, 201731, 2019 of $98.67.$150.33. The amounts are not reduced to reflect any elections to defer receipt under the Employee Deferred Compensation Plan.

(4)

(5)
The options denoted as Hire Grant 1 for Mr. Green in the table above and 30,499 of the shares of restricted stock granted to Mr. Green will vestvested 57.1% on April 24, 2018 provided that he remains employed by the Company, terminates with “good reason,” is terminated without “cause” by the Company, dies or becomes disabled.2018. The remaining 42.9% of these retention options and shares will vest on April 24, 2020 but would be forfeitedforfeit if employment is terminated for any reason other than death or disability before that date. The options denoted as Hire Grant 2 for Mr. Green were 25% vested upon the grant date and the remaining options will vest in 25% increments on February 24th of each following year. The options denoted as Hire Grant 3 for Mr. Green will vest in 25% increments on February 23rd of each year following grant. These option vesting schedules are consistent with the schedules for active employees as of February 2014 and 2015, for each respective option.  All other option grants are subject to the vesting schedules set forth in footnotesfootnote 1 and 3 above.

(5)

(6)
The restricted stockRSUs granted to Mr. MillerBirkett will vest 100%25% on November 19, 2019the anniversary of the grant provided that he remains employed by the Company, terminates with “good"good reason," is terminated without “cause”"cause" by the Company, dies or becomes disabled. The options awarded upon hire will vest in 25% increments on the anniversary of the grant.

(7)
The options denoted as Hire Grant 1 for Mr. Miller in the table above will vest in 25% increments on February 23rd of each year following grant. These option vesting schedules are consistent with schedules for active employees as of February 2015. The options denoted as hire Grant 2 for Mr. Miller in the table were 25% vested upon the grant date and the remaining options vested in 25% increments on February 24th of each year following grant. Beginning with the options and PSUs granted on February 19, 2019, the Committee defines "Qualifying Retirement" for Mr. Miller, as remaining employed with West for five years of service. Upon attainment of five years of service, the awards granted on February 19, 2019 will continue to vest and all options will retain the original expiration date. Any subsequent awards will receive Qualifying Retirement Treatment should Mr. Miller attain five years of service and retire on or after October 1 of the grant year. This revised definition does not apply to awards granted prior to 2019.

(8)
The RSUs granted to Mr. Abraham will vest one-third on the anniversary of the grant provided that he remains employed by the Company, terminates with "good reason," is terminated without "cause" by the Company, dies or becomes disabled. The options awarded upon hire will vest in 25% increments on February 23rd on each following year.  The options denoted as Hire Grant 2 for Mr. Miller will vest in 25% increments on February 23rdthe anniversary of each year.  These option vesting schedules are consistent with the schedules for active employees as of February 2014 and 2015, for each respective option.  All other grants are subject to the vesting schedules set forth in footnotes 1 and 3 above.

(6)Mr. Montecalvo received RSUs on his hire date rather than restricted stock.  RSUs are not issued shares entitled to vote and dividends, but otherwise are substantially similar to restricted stock.  grant.

(9)
The RSUs granted to Mr. Montecalvo on his hire date will vest 100% on September 26, 2021 provided that he remains employed by the Company, terminates with “good"good reason," is terminated without “cause”"cause" by the Company, dies or becomes disabled.  The RSUs are eligible to receive DEUs subject to the same vesting schedule. The options denoted as Hire Grant for Mr. Montecalvo vest in 25% increments on February 23rd of each year following the grant date. These option vesting schedules are consistent with the schedules for active employees as of February 2016. All other grants are subject to the vesting schedules set forth in footnotes 1 and 34 above.

2020 Annual Meeting and Proxy Statement   |   57


2017 Option Exercises and Stock Vested Table

Table of Contents

GRAPHIC COMPENSATION TABLES

2019 Option Exercises and Stock Vested Table

The following table provides information about the value realized by our NEOs on the exercise of stock options and vesting of stock awards and units during 2017.  Mr. Montecalvo2019. None of the NEOs exercised noany options and had no stock vest in 2017.

 

 

Option Awards

 

Stock Awards

 

 

 

Number of Shares 
Acquired on Exercise

 

Value Realized on 
Exercise (1)

 

Number of Shares Acquired 
on Vesting (2)

 

Value Realized on 
Vesting (3)

 

Name

 

(#)

 

($)

 

(#)

 

($)

 

Eric M. Green

 

-0-

 

-0-

 

9,110

 

791,932

 

William J. Federici

 

54,966

 

4,102,431

 

6,797

 

590,863

 

Karen A. Flynn

 

-0-

 

-0-

 

6,103

 

530,534

 

George L. Miller

 

-0-

 

-0-

 

1,455

 

126,483

 


(1)         The value realized is equal to the difference between the option exercise price and the fair market value of our common stock on the date of exercise, multiplied by the number of options exercised.2019.

(2)
2019 Option Exercises and Stock Vested Table

Stock Awards
​​​​​​
NameNumber of Shares
Acquired on
Vesting (#)(1)



Value Realized
on Vesting
($)(2)



Eric M. Green8,430864,159
Bernard Birkett2,490303,902
George L. Miller9,1021,243,308
Silji Abraham1,555161,344
David A. Montecalvo1,048107,430
Karen A. Flynn2,951302,507
(1)
This column reflects incentive shares that were awarded in 2013 and vested in 2017 andincludes PSUs that were awarded in 20142016 and earned in 2016,2018, and paid in 2017,2019 to all NEOs except Mr. Birkett, whether or not either award was deferred under the Employee Deferred Compensation Plan. Only Ms. Flynn had incentive shares vest in 2017.  She had 136 shares withThis column also includes vesting of a grant date fair valuenew hire RSU awarded to Mr. Miller on November 15, 2015 which vested over a four-year period and the partial vesting of $83.13 per share on February 17, 2017 vest for a total grant date fair value of $11,306.Mr. Birkett's and Mr. Abraham's new hire RSU awards. For RSUs and PSUs, the total includes additional shares awarded pursuant to DEUs, which are credited on unvested PSUs over the three-year vesting period at a rate that assumes the participant will earn the target award. AtFor PSUs, at the time of the payout, the credited DEUs are then increased or decreased based on the payout factor earned for the applicable three-year performance period. Because the payout factor earned for the 2014-20162016-18 performance period was 89.81%49.39%, the number of DEUs accrued over that period was multiplied by 89.81%49.39%. The following table shows the PSU payouts that vested, and the number of additional shares distributed due to DEUs.

Name

 

PSUs Earned

 

Dividend Equivalents Paid on
PSU Payouts

 

Eric M. Green

 

8,999

 

111

 

William J. Federici

 

6,640

 

157

 

Karen A. Flynn

 

5,843

 

124

 

George L. Miller

 

1,442

 

13

 


(3)

(2)
The value of the PSUs was determined by multiplying the number of vested units by $86.93,$102.51, the fair market value of our common stock on the payout date, February 14, 2017.

19, 2019.


2016-18 PSU and 2018 RSU Vesting

Name

PSUs Earned
Dividends Equivalents
Paid on PSU Payouts


RSUs Earned
Dividends
Equivalents Earned


Eric M. Green

8,281149

Bernard Birkett

2,47713

George L. Miller

2,484456,421152

Silji Abraham

1,5469

David A. Montecalvo

1,03315

Karen A. Flynn

2,89952

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COMPENSATION TABLESGRAPHIC

Retirement Plan

2019 Pension Benefits

Qualified Retirement Plan

Until December 31, 2006, we maintained a final average pay defined benefit pension plan, which calculated retirement benefits for all salaried participants as a percentage of average annual earnings. Effective January 1, 2007, each participant’sparticipant's accrued benefit under the Retirement Plan’sPlan's pension formula was frozen, and the pension benefits related to service on or after January 1, 2007 for all existing and new participants are expressed as a “cash balance”"cash balance" type formula. Under the cash balance approach, an allocation is made at the end of each calendar year (or on employment termination, if earlier) to a participant’sparticipant's hypothetical cash balance account. The allocation is determined by the age of the participant and the percentage of annual compensation for that age band pursuant to the basic cash balance formula.

For participants who have attained minimum age and service requirements, an additional annual allocation is made to their accounts to replace all or part of the benefit for participants who were participating in the Retirement Plan on December 31, 2006 (“transition benefit”).  The transition benefit percentage will remain for the duration of the transition period, which continues until December 31, 2018 or a participant’s retirement, whichever comes first.  The transition benefit is applicable only to employees who were actively employed on December 31, 2006 and the allocation percentage is based on the age of the participant on that date.  The transition benefit for Mr. Federici is 8.0%.  All other continuing NEOs are not eligible to receive the transition benefit because they were not employed on December 31, 2006.

Each year, the balance in the hypothetical account will be credited with interest at a rate equal to the average 30-Year Treasury Bond Rate for November of the year prior to the year the interest is credited or 3.3%, if greater.

In general, the compensation used for determining a participant’sparticipant's benefits under the retirement plan consists of base salary, overtime, annual incentive awards (paid in cash or stock) and other cash remuneration, plus a participant’sparticipant's contributions to our 401(k) plan.

We are freezingfroze pay and transition credits to the Retirement Plan as of December 31, 2018. Only interest credits will continue to accrue on previously accrued benefits for eligible participants on January 1, 2019 and beyond. No employees hired on or after January 1, 2017 will beare eligible for the Retirement Plan. In lieu of the Retirement Plan benefits, we have made enhancements to our 401(k) plan, including a non-elective contribution, which is currently 2% and will be 3% of a participant’sparticipant's compensation, in 2019.

subject to applicable Code limits and vesting requirements.

Normal retirement age under the Retirement Plan is 65. Participants with ten years of service may retire and commence payment of their frozen benefits upon reaching age 55, with reduced benefits based on their age at the retirement date. A participant may begin distribution of his or her cash balance benefits on employment termination, without regard to age or years of service, but will forego future interest credits.

The benefit that each participant will receive at retirement will be the sum of the accrued benefit under the old pension formula as of December 31, 2006, plus the amount allocated to the participant’sparticipant's cash-balance account. A participant vestsAll NEOs that participate in his or her combined benefit upon completing three years of service.the Retirement Plan are vested.

Supplemental Executive Retirement Plan

SERP

2019 IRS requirements limit the compensation that can be used to calculate a participant’sparticipant's benefit under a qualified retirement plan to $275,000$280,000 and the annual benefit is limited to $220,000.$225,000. The SERP benefits are substantially equal to the difference between the total benefit accrued under the Retirement Plan and the amount of benefit the Retirement Plan is permitted to provide under the statutory limits on benefits and earnings. The benefits are unfunded and paid out of our general assets. SERP benefits (other than interest credit accruals) will be frozenfroze in a similar manner to the freeze to the Retirement Plan in January 2019.

The SERP provides for benefits accrued on or after January 1, 2005 to be payable in a lump sum on the date that is six months following termination of employment. Benefits accrued before that date are payable at the same time and in the same form as under the Retirement Plan. SERP benefits may be reduced to reflect early commencement of benefits before age 65. The SERP was closed to new entrants effective January 1, 2017.

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Table of Contents

GRAPHIC COMPENSATION TABLES


2019 Pension Benefits Table

The following table shows the present value of accumulated pension benefits that each U.S.-based NEO is eligible to receive under our Retirement Plan and the SERP.

 

 

 

 

Number of Years 
Credited Service (1)

 

Present Value of 
Accumulated Benefit (2)

 

Payments During Last 
Fiscal Year

 

Name

 

Plan Name

 

(#)

 

($)

 

($)

 

Eric M. Green

 

Retirement Plan

 

  2

 

43,006

 

 

 

 

SERP

 

  2

 

165,647

 

 

 

 

 

 

    

 

208,653

 

 

William J. Federici

 

Retirement Plan

 

14

 

589,862

 

 

 

 

SERP

 

14

 

1,230,931

 

 

 

 

 

 

    

 

1,820,793

 

 

Karen A. Flynn

 

Retirement Plan

 

24

 

455,705

 

 

 

 

SERP

 

24

 

144,510

 

 

 

 

 

 

 

 

600,215

 

 

George L. Miller

 

Retirement Plan

 

  2

 

40,880

 

 

 

 

SERP

 

  2

 

36,637

 

 

 

 

 

 

 

 

77,517

 

 

David A. Montecalvo

 

Retirement Plan

 

  1

 

31,180

 

 

 

 

SERP

 

  1

 

9,788

 

 

 

 

 

 

    

 

40,968

 

 

Mr. Birkett and Mr. Abraham are not eligible for and did not accrue benefits under the Retirement Plan or SERP.


Name


Plan Name
Number of Years
Credited
Service (#)



Present Value of
Accumulated
Benefit ($)



Payments
During Last
Fiscal Year ($)



Eric M. Green

Retirement Plan5$63,687$

SERP5$261,906$

  $273,630$

George L. Miller

Retirement Plan4$63,810$

SERP4$66,650$
​​​​​​​​​​

$130,460$

David A. Montecalvo

Retirement Plan3$52,202$

SERP3$29,653$

  $81,855$

Karen A. Flynn

Retirement Plan34$523,563$

SERP34$195,617$
​​​​​​​​​​

$719,180$
(1)
Equals the number of full years of credited service as of December 31, 2017.2019. Credited service generally begins with a participant’sparticipant's hire date and ends with the date of employment termination.



(2)
These present values assume that each NEO retires at age 65 for purposes of the Retirement Plan and the SERP. The assumed cash balance crediting rate is 3.30%3.3% in the Retirement Plan and the SERP. The discount rate and pre-retirementpost-retirement mortality assumptions used in estimating the present values of each NEO’sNEO's accumulated pension benefit vary by plan, as provided inare set forth below. As no continuing NEOs are eligible for the table below.

frozen SERP benefit, those assumptions are not included.

Plan

Interest Rate


Pre-retirementPost-retirement Mortality Assumption

Retirement Plan

3.35%

3.65

%

70% of the present value is calculated using aUni-sex (blended 50% male and 50% female blended RP-2014 annuitant mortality table without collar adjustment (removing MP-2015 improvement projections from 2006-2014) and applying Scale BB 2-Dimensional mortality improvements from 2006 on a generational basis, 30%female) Society of the present value is calculated using the RP-2014 gender specificActuaries' ("SOA") Private Retirement Plans ("Pri-2012") annuitant mortality tables without collar adjustment (removing MP-2014and the SOA's MP-2019 mortality improvement projections from 2006-2014)scale for lump sum payments and applying Scale BB 2-Dimensionalthe gender-specific Pri-2012 annuitant mortality improvements from 2006 on a generational basis.

tables and MP-2019 mortality improvement scale for annuity payments. The form of payment assumption is 60% lump sum and 40% annuity payments.

Plan

Rate

Pre-retirement Mortality Assumption

SERP

2.90

%

50% male and 50% female blended RP-2014 annuitant mortality table without collar adjustment (removing MP-2015 improvement projections from 2006-2014) and applying Scale BB 2-Dimensional mortality improvements from 2006 on a generational basis.


Actual benefit present values will vary from these estimates depending on many factors, including an executive’sexecutive's actual retirement age, future-credited years of service, future compensation, form of payment election, applicable interest rates and regulatory changes.

60   |   2020 Annual Meeting and Proxy Statement


2017 Nonqualified Deferred Compensation

Table of Contents

COMPENSATION TABLESGRAPHIC

2019 Nonqualified Deferred Compensation

The Employee Deferred Compensation Plan allows highly compensated employees to defer up to 100% of salary and cash bonus. Deferred cash contributions may be invested in a selection of investment options that mirror the funds available under our 401(k) plan.

Consistent with our 401(k) plan,With respect to employee contributions made before 2019, we match contributionsmatched them at the rate of 100% of the first 3% of salary deferrals, plus 50% of the next 2%, and employer matching contributions are 100% vested. Matching contributions ceased effective January 1, 2019. A non-elective contribution is also made on behalf of participants who are ineligible for

exceed the Retirement Plan.  Participants also mayapplicable Code limits. Before 2019, participants were eligible to defer payout of annual bonus shares and PSUs.shares. We contributecontributed one restricted incentive share for each four bonus shares deferred.

PSUs remain eligible for deferral.

Incentive shares will vest on the fourth anniversary of the date of contribution or will vest pro rata on retirement, death and/or disability, if earlier. During the time these awards are deferred, they are deemed invested in our common stock and receive additional credits for DEUs. All deferred stock awards are distributed in shares of common stock.

Amounts deferred in any year, except for matching contributions on cash contributions, will be distributed automatically in a lump sum five years after the year of deferral. A participant may choose to defer these amounts to another date or until termination. Matching contributions are only distributed on termination. Participants may elect to receive distributions on termination in a cash or stock lump sum or up to ten annual installments.

Information regarding NEO’sNEO's account balances in the Employee Deferred Compensation Plan is below. Mr. Montecalvo was eligible for the Plan but did not participate in 2017.this plan in 2019.


20172019 Nonqualified Deferred Compensation Table

Name

 

Executive Contributions 
in Last FY (1)
($)

 

Registrant 
Contributions in Last 
FY (2)
($)

 

Aggregate 
Earnings in Last 
FY (3)
($)

 

Aggregate 
Withdrawals/
Distributions
($)

 

Aggregate Balance
at Last FYE (4)
($)

Eric M. Green

 

-0-

 

-0-

 

1,538

 

-0-

 

70,748

William J. Federici

 

-0-

 

-0-

 

225,932

 

-0-

 

1,715,911

Karen A. Flynn

 

23,481

 

7,985

 

(1,809

)

18,282

 

373,740

George L. Miller

 

520,572

 

62,097

 

27,213

 

-0-

 

941,929


Name


Executive Contributions
in Last FY ($)(1)


Registrant
Contributions
in Last FY ($)(2)



Aggregate
Earnings in
Last FY ($)(3)



Aggregate
Withdrawals
Distributions ($)



Aggregate
Balance at Last
FYE ($)(4)



Eric M. Green

-0--0-21,577-0-90,657

Bernard J. Birkett

45,151852,528-0-48,884

George L. Miller

791,50454,662905,084-0-3,481,964

Silji Abraham

42,1001,2819,242-0-87,705

David A. Montecalvo

-0--0--0--0--0-

Karen A. Flynn

25,173-0-67,52593,733457,435
(1)
The amounts reported in this column are reflected in this year’syear's Salary column of the Summary Compensation Table (“SCT”("SCT"). For Mr. Miller, the amount also includes amounts reported under the EquityNon-Equity Incentive Plan and Stock Awards columns of the SCT in prior years.



(2)         The amount
These amounts reflect non-elective contributions made on behalf of participants who exceed the applicable Code limits in this column represents salary deferral matching contributions.

the Employee Deferred Compensation Plan for Mr. Birkett and Mr. Abraham and incentive shares in the Employee Deferred Compensation Plan for Mr. Miller.

(3)
These amounts reflect the net gains attributable to the investment funds in which the executives have chosen to invest and for deferred shares of stock contributed to the Employee Deferred Compensation Plan, net of any distributions or transfers.



(4)
The total balance includes amounts contributed for prior years which have all been previously reported in the Summary Compensation TableSCT for the year those amounts were deferred.

Payments on Disability

Payments on Disability

Each current U.S. NEO has long-term disability coverage, which is available to all eligible U.S. employees. The coverage provides full salary continuation for six months and thereafter up to 60% of pay with a $25,000 monthly limit. Eligible U.S. employees will earn cash balance pay credits until 2019. Employees who are vested in our Retirement Plan also receive continued medical coverage while on disability. Deferred compensation is payable according to the executive’sexecutive's election. Outstanding unvested stock options granted annually under our LTIP would be forfeited and outstanding vested stock options would be exercisable for the term of the option. Outstanding PSUs and unvested incentive shares would be forfeited when an employee becomes disabled. Lastly, the special retention stock, RSUs and options granted upon hire to Mr. Green, Mr. MillerBirkett, Mr. Abraham and Mr. Montecalvo will vest upon disability.

2020 Annual Meeting and Proxy Statement   |   61


Payments on Death

Table of Contents

GRAPHIC COMPENSATION TABLES

Payments on Death

Each current U.S.-based NEO has group life insurance benefits that are available to all eligible U.S. employees. The benefit is equal to one times payyear's salary with a maximum limit of $500,000, plus any supplemental life insurance elected and paid for by the NEO. Deferred compensation is payable according to the executive’sexecutive's election on file. Outstanding

unvested stock options granted annually under our LTIP, PSUs and incentive shares would be forfeited, and outstanding vested stock options would become exercisable for the term of the option.

The special retention stock, RSUs and / or options granted to Mr. Green, Mr. MillerMontecalvo, Mr. Birkett and Mr. MontecalvoAbraham upon hire will also vest upon death.

Estimated Payments Following Termination

Estimated Payments Following Termination

We have an agreement with Mr. Green that entitles him to severance benefits on certain types of employment terminations not related to a CIC. All other NEOs are not covered by an employment agreement or a general severance plan and any severance benefits payable to them under similar circumstances would be determined by the Committee in its sole discretion.

Mr. Green

Mr. Green

Mr. Green has an employment agreement that entitles him to continuation of his salary and welfare benefits at active employee rates for a period of 12 months, if he is terminated involuntarily other than for “Cause”"Cause" or the Company gives notice to Mr. Green that it will not renew the term of his employment under the agreement. Mr. Green’sGreen's employment agreement does not entitle him to severance payments or continued benefits if his employment is terminated for causeCause or because of his death or disability (except as described above).

The restricted stock and stock options that Mr. Green received as an enticement award (but not any other restricted stock or stock options granted) will vest: (1) in the event of his termination other than for Cause, or (2) due to Good Reason.

“Cause”"Cause" means any willful failure by Mr. Green to perform his duties or responsibilities or comply with any valid and legal directives of the Board; act of fraud; embezzlement; theft or misappropriation of the funds of the Company by Mr. Green; or Mr. Green’sGreen's admission to or conviction of a felony or any crime involving moral turpitude, fraud, embezzlement, theft or misrepresentation; Mr. Green’sGreen's engagement in dishonesty, illegal conduct or misconduct that is materially injurious to the Company; Mr. Green’sGreen's breach of any material obligation of any written agreement with the Company; or a material violation of a rule, policy, regulation or guideline imposed by the Company or a regulatory body.

“Good Reason” means a material diminution in Mr. Green’s base salary; a material reduction in Mr. Green’s duties, authority or responsibilities; or the relocation of Mr. Green’s principal place of employment in a manner that lengthens his one-way commuting distance by fifty (50) or more miles.

AnyThe obligation to pay severance pay would beis contingent on execution of a release and other customary provisions, including compliance with non-competition, non-solicitation and confidentiality obligations contained in the agreement.

Mr. Miller and Mr. Montecalvo

Other NEOs

The restricted stockRSUs that Mr. MillerBirkett, Mr. Abraham and RSUs that Mr. Montecalvo received as a retention awardawards will vest: (1) in the event of termination other than for Cause or (2) due to Good Reason. The definitions of “Cause”"Cause" and “Good Reason”"Good Reason" are substantially the same for all three awards.

"Cause" means (i) an act or acts of dishonesty taken by an NEO, (ii) repeated failure by an NEO to perform his or her duties and obligations as thosean employee, which are demonstrably willful and deliberate on the NEO's part and which are not remedied after the receipt of written notice from the Company, (iii) the NEO's conviction of a felony, or (iv) the NEO's intentional breach of the COBC, which is materially and demonstrably injurious to the Company.

"Good Reason" means the occurrence of any of the following without the NEO's consent: (1) a material diminution in the NEO's base salary; (2) a material reduction in the NEO's duties, authority or responsibilities relative to the NEO's duties, authority, and responsibilities in effect immediately prior to such reduction; or (3) the relocation of the NEO's principal place of employment in a manner that applylengthens by fifty (50) or more miles the NEO's one-way commuting distance to the NEO's place of employment; provided that a termination shall only be for Good Reason if: (a) within forty-five (45) calendar days of the initial existence of Good Reason, the NEO provides written notice of Good Reason to the Company; (b) the Company does not remedy said Good Reason within thirty (30) calendar days of its receipt of such notice; and (c) the NEO terminates employment within sixty (60) calendar days after the expiration of such 30-day remedy period.

Mr. Green.Miller does not have any outstanding RSUs which would entitle him to additional severance benefits. Ms. Flynn separated from service effective December 31, 2019.

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Estimated Additional Severance Payments

Table of Contents

COMPENSATION TABLESGRAPHIC

Estimated Additional Severance Payments Table

The table below reflects amounts that eligible executives would receive on termination of employment for certain reasons, other than following a change-in-control.CIC. No NEO will receive any enhanced benefit because of a termination for cause.Cause. The amounts do not include amounts payable through a plan or

arrangement that is generally applicable to all salaried employees, including equity acceleration values to the extent they apply to all LTIP participants.

Name

 

Event

 

Cash 
Severance

 

Continuation 
of Welfare 
Benefits (1)

 

Vesting of 
Unvested Equity

 

Total

 

Eric M. Green

 

Involuntary (no Cause) or Good Reason

 

850,000

 

17,148

 

15,809,110

 

16,676,258

 

 

 

Death or Disability

 

-0-

 

-0-

 

15,809,110

 

15,809,110

 

George L. Miller

 

Involuntary (no Cause), Good Reason, Death or Disability

 

-0-

 

-0-

 

1,917,976

 

1,917,976

 

David A. Montecalvo

 

Involuntary (no Cause), Good Reason, Death or Disability

 

-0-

 

-0-

 

526,870

 

526,870

 


Name


Event
Cash
Severance


Continuation of
Welfare Benefits(1)


Vesting of
Unvested Equity


Total

Eric M. Green

Involuntary (no Cause) or Good Reason945,00017,406-0-962,406

Bernard J. Birkett

Involuntary (no Cause) or Good Reason-0--0-1,125,4851,125,485

David A. Montecalvo

Involuntary (no Cause) or Good Reason-0--0-213,215213,215

Silji Abraham

Involuntary (no Cause) or Good Reason-0--0-469,065469,065
(1)
This amount reflects the current premium incremental cost to us for continuation of elected benefits to the extent required under an applicableMr. Green's agreement.

Payments on Termination in Connection with a Change-in-Control

Payments on Termination in Connection with a Change-in-Control

We have entered into agreements with each of our U.S.-based NEOs, as well as certain other of our officers, which provide the benefits described below on qualifying terminations of employment in connection with or within two years following a change-in-control.CIC.

Ms. Flynn,All currently employed NEOs except Mr. Miller, and Mr. MontecalvoGreen have Change-in-Control agreementsCIC Agreements that are substantially similar and include the following:

    ·Cash severance pay equal to two times the sum of the executive’sexecutive's highest annual base salary in effect during the year of termination and their target bonus immediately preceding the change-in-control.

    CIC.·

    Immediate vesting of any unvested benefits and matching contributions under our 401(k) plan and the Employee Deferred Compensation Plan as of the termination of the executive’sexecutive's employment.

    ·

    Payment of short-term incentive compensation with respect to the period during which the termination occurs at target levels, prorated for number of days worked in the year.

    ·

    Immediate vesting of all unvested stock options, stock appreciation rights (“SARs”("SARs"), shares of stock, stock units and other equity-based awards at target levels.

    ·

    Continued medical, dental, life and other benefits for 24 months after termination of the executive’sexecutive's employment, or until his or her retirement or eligibility for similar benefits with a new employer.

    ·

    Payments will be reduced below the applicable threshold in the Code if the NEO would be in a better after-tax position than if the excise tax under Section 4999 of the Code applied. Based on assumptions described below, Mr. Green, Mr. Miller and Ms. Flynn would have their payouts exceed the golden parachute threshold under the Code. However, only Ms. Flynn would have her payments cutback in that scenario because she would be in a better after-tax position than receiving the full amount.

    ·

    Outplacement assistance up to $50,000.

The severance payments are payable in monthly installments and if the executive is a key employee at the time of his termination, payments will be delayed six months to the extent required by applicable tax law.

Employment terminations that entitle these executives to receive the severance benefits under a change-in-controlCIC consist of: (1) resignation following a constructive termination of his employment; or (2) employment termination other than due to death, disability, continuous willful misconduct or normal retirement. These terminations must occur within two years after a change-in-control.

CIC.

To receive the severance benefits under the agreement, an executive must agree not to be

employed by any of our competitors or compete with us in any part of the United States for up to two years following employment termination for any reason and execute a release of claims in favor of the Company.

Mr. Green has a separate employment agreement, the CICwith change-in-control provisions that are substantially similar to the provisions contained in the other NEO agreements for Ms. Flynn, Mr. Miller and Mr. Montecalvo, except for the following:

    ·His payment is two times the sum of his annual base salary plus average of his bonus over the prior three years.

    ·

    36-months of benefit continuation instead of 24 months.

    ·

    Mr. Green’sGreen's benefits may be reduced in the event he retires.

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Table of Contents

GRAPHIC      COMPENSATION TABLES

    His agreement does not contain specific language regarding the satisfaction of performance goals for incentive compensation, or a payout of the short-term incentive compensation for the year of termination.

    ·

    The definition of a CIC set forth below requires a change in 2/3two-thirds of our Board members rather than 3/4.

    three-fourths.·

    The definition of “Cause”"Cause" and “Constructive"Constructive Termination," which is called “Good Reason”),"Good Reason," are slightly different and set forth in his employment agreement, which is described under Post-Employment Compensation Arrangements on page 41.

    As Mr. Federici was employed before 2010, his agreement was not modified, in accordance with our stated policies.  Mr. Federici’s agreement is similar to our form agreement, with the following exceptions:

    ·49.

Definitions used in the CIC Agreements      His payment is three times the sum of his annual base salary plus average of his bonus over the prior three years.

·      He may trigger his payments under his agreement by resigning during a 30-day period beginning 12 months following the change-in-control.

·      He will receive 36 months of benefit continuation at active employee rates.

·      He is entitled to full indemnification for any excise taxes that may be imposed by Section 4999 of the Code in connection with the change-in-control, including interest and penalties, and payment of his legal fees and expenses if we contest the validity or enforceability of the agreement.  Mr. Federici would not receive a gross-up under the change-in-control scenario described below.

·      Consistent with our prior form agreement, his agreement does not contain specific language regarding the satisfaction of performance goals for incentive compensation, or a payout of the short-term incentive compensation for the year of termination.

·      Additionally, Mr. Federici’s agreement does not contain a definition of Cause and the definition of Constructive Termination described below does not include changing his reporting line, a reduction in benefits (unless broad-based) or failure of a successor to assume the agreement.

·      His agreement does not contain a requirement to execute a release or a noncompete restriction.

·      Mr. Federici’s benefits may be reduced in the event that he retires.

Definitions used in the Change-in-Control Agreements.

The definitions below apply to all agreements, except as specifically noted above for Mr. Green and Mr. Federici.Green.

Definition of “Change-in-Control.”  "Change-in-Control."For each agreement, a “change-in-control”CIC includes any of the following:

    ·Any person or entity other than us, any of our current directors or officers or a trustee or fiduciary holding our securities, becomes the beneficial owner of more than 50% of the combined voting power of our outstanding securities;

    ·

    An acquisition, sale, merger or other transaction that results in a change in ownership of more than 50% of the combined voting power of our stock;

    ·

    A change in the majority of our Board of Directors over a two-year period that is not approved by at least 2/2/3 of the directors then in office who were directors at the beginning of the period;

    ·

    Any event requiring a reporting of a change in controlCIC pursuant to the regulations under SEC Form 8-K; or,

    ·

    Execution of an agreement with us, which if consummated, would result in any of the above events.

Definition of “Cause.”"Cause." Cause generally includes:

    ·Acts of dishonesty;

    ·

    Repeated failure to perform duties which are demonstrably and deliberate and not remedied after receipt of notice;

    ·

    Conviction of a felony; or,

    ·

    Intentional breach of our Code of Business ConductCOBC, which is materially and demonstrably injurious to the Company.

Definition of “Constructive"Constructive Termination." A “constructive termination”"Constructive Termination" generally includes any of the following actions taken by the Company without the executive’sexecutive's written consent following a change-in-control:CIC:

    ·Significantly reducing or diminishing the nature or scope of the executive’sexecutive's authority or duties including reporting to someone whose scope of authority is diminished;

    ·

    Materially reducing the executive’sexecutive's annual salary or incentive compensation opportunities;

    ·

    Failure of a successor to assume the agreement;

    ·

    Changing the executive’sexecutive's principal office location by more than 50 miles;

    ·

    Failing to provide substantially similar fringe benefits, or substitute benefits that were substantially similar to the benefits provided as of the date of the agreement; or

    ·

    Failing to obtain a satisfactory agreement from any successor to us to assume and agree to perform the obligations under the agreement.

    Estimated Benefits on Termination Following a Change-in-Control

Estimated Benefits on Termination Following a Change-in-Control

The following table shows potential payments to our NEOs if their employment terminates following a change-in-controlCIC under existing contracts, agreements, plans or arrangements. The amounts assume a December 31, 20172019 termination date and use the closing price of our common stock as of that date, $98.67.$150.33. Based on current assumptions, Ms. Flynn’sMr. Birkett's and Mr. Miller's benefit amounts would be reduced by $120,717$550,214 and $111,971 respectively to put herthem in a better after-tax position than shethey would have been in had shethey received the full payout and paid the applicable golden parachute excise tax. All the values in the table

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Table of Contents

COMPENSATION TABLESGRAPHIC

are in U.S. Dollars.

Name

 

Aggregate 
Severance Pay (1)

 

PSU 
Acceleration (2)

 

Vesting of 
Restricted Stock/ 
RSUs (3)

 

Vesting of Stock 
Options (4)

 

Parachute Excise 
Tax Impact

 

Welfare
Benefits 
Continuation (5)

 

Outplacement 
Assistance (6)

 

Total

 

Eric M. Green

 

3,052,834

 

3,452,997

 

3,009,336

 

12,799,774

 

-0-

 

50,627

 

50,000

 

22,415,568

 

William J. Federici

 

2,727,421

 

1,000,826

 

-0-

 

2,383,008

 

-0-

 

35,945

 

50,000

 

6,197,200

 

Karen A. Flynn

 

1,549,565

 

1,178,991

 

44,698

 

2,415,884

 

(120,717

)

48,767

 

50,000

 

5,167,188

 

George L. Miller

 

1,325,560

 

857,794

 

544,693

 

1,373,283

 

-0-

 

50,370

 

50,000

 

4,201,700

 

David A. Montecalvo

 

875,083

 

445,398

 

139,914

 

386,956

 

-0-

 

50,270

 

50,000

 

1,947,621

 

As Ms. Flynn has terminated employment with the Company, and no payments could be made under her CIC agreement, she is not included in the table below.


Name


Aggregate
Severance Pay(1)


PSU
Acceleration(2)


Vesting of
Restricted
Stock RSUs(3)



Vesting of
Stock Options(4)


Parachute
Exercise
Tax Impact(5)



Welfare
Benefits
Continuation(6)



Outplacement
Assistance(7)


Total

Eric M. Green

$3,784,897$6,051,841$2,180,273$19,397,545$52,693$50,00031,517,247

Bernard J. Birkett

$1,515,021$1,020,997$1,137,100$1,246,152$(550,214)$52,693$50,0004,471,749

George L. Miller

$1,398,008$949,415$$2,418,740$(111,971)$52,510$50,0004,756,702

David A. Montecalvo

$1,378,580$971,341$244,538$1,887,373$37,460$50,0004,569,291

Silji Abraham

$1,329,104$646,242$526,686$1,064,438$1,043$50,0003,617,513
(1)
For Mr. Green the aggregate severance pay amount represents two times the sum of the executive’sexecutive's (a) highest annual base salary in effect during his year of termination, and (b) the average of his bonus payout in the three years preceding the CIC (the “Severance Basis”"Severance Basis"). For Mr. Federici, this amount is three times this same Severance Basis.  For Ms. Flynn,Birkett, Mr. Miller, Mr. Abraham and Mr. Montecalvo, the bonus component of the Severance Basis is equal to their target bonus in the year of termination, and the aggregate severance pay is two times the Severance Basis.

(2)
This amount represents the payout of all outstanding PSU awards on a change-in-control at the target payout.

payout.

(3)
This amount represents the value of all unvested restricted awards, which would become vested on a change-in-control (whether or not the awards were deferred).

(4)
This amount is the intrinsic value, which is equal to the fair market value of a share of stock on December 31, 20172019 minus the per-share exercise price of all unvested stock options for each executive multiplied by the number of unvested options as of December 31, 2017.

2019.

(5)
These amounts represent the impact of the modified cutback provisions in each executive's CIC Agreement, if applicable.
(6)
This amount represents the employer portion of the premiums for medical, dental and life insurance coverage for 24 months (36 months for Mr. Federici only).

(6)months.

(7)
This amount estimates the cost of providing outplacement assistance.

CEO Pay Ratio

CEO Pay Ratio

Applicable SEC rules require the disclosure of our median employee’semployee's pay and the ratio of that pay to our CEO’sCEO's pay. Mr. Green’s 2017Our CEO pay ratio and the underlying compensation and employee count data are reasonable estimates calculated consistent with applicable SEC guidance governing use of estimates, adjustments, and statistical sampling permitted by the SEC. Our median employee was identified in 2018 and we used this same employee to calculate our CEO pay ratio for 2019, as indicatedpermitted by the SEC regulations, because there has been no change in our 2017 Summary Compensation Table was $4,756,563 andemployee population or employee compensation arrangements that we believe would significantly impact our median employee’s pay calculated in the same manner was $42,962.  The ratio of Mr. Green’s pay to our median worker’s pay as determined under applicable SEC rules, therefore, is 111:1.

disclosure for 2019.

In determining our median employee, we used “base pay”"base pay" as our compensation definition, which we then calculated as annual base pay based on a reasonable estimate of hours worked during 20172019 for hourly workers, and upon salary levels for the remaining employees. We did not utilize cost-of-living adjustments. We annualized pay for those who commenced work during 2017.2019. We used a valid statistical sampling methodology to identify the base pay for the median worker. In addition, in selecting the median worker, as permitted by applicable SEC regulations, we used our global employment roster as of December 31, 2017,November 30, 2018, but excluded all employees in the following countries (with the number of employees excluded in parentheses): Australia (5)(4), Argentina (6), Colombia (6), Italy (8), Spain (8)(6), India (71)(79), Israel (115)(120), and Puerto Rico (142)(178). OurAs of November 30, 2018, total number of employees as of the determination date was 7,595,7,881, with U.S. employees totaling 3,3593,421 and foreign employees totaling 4,236.4,460.

Our CEOMr. Green's 2019 pay, as indicated in our 2019 Summary Compensation Table was $6,479,661 and our median employee's pay calculated in the same manner was $49,229. The ratio is a reasonable estimate calculated consistent withof Mr. Green's pay to our median worker's pay as determined under applicable SEC guidance governing use of estimates, adjustments,rules, therefore, is: 133:1.

2020 Annual Meeting and statistical sampling permitted by the SEC.Proxy Statement   |   65


Financial Measures and Adjustments

The following table contains unaudited reconciliationsTable of 2017 U.S. GAAP consolidated revenues, OCF and diluted EPS to Adjusted Revenue, Adjusted OCF, and Adjusted Diluted EPS for AIP purposes relating to the 2017 AIP Performance Metrics and Achievement Table.  There were no adjustments to Proprietary GP or Proprietary OCF.Contents

2017 Financial MeasuresGRAPHIC (US$ millions, except per-share data)

Consolidated Performance

 

 

 

Diluted EPS (1)

 

$

1.99

 

Venezuela deconsolidation

 

0.15

 

Tax law changes

 

0.64

 

Adjusted Diluted EPS per Earnings Release

 

2.78

 

Tax benefit from stock-based compensation accounting change (2)

 

(0.44

)

Share Repurchase (2)

 

(0.01

)

Adjusted Diluted EPS for AIP purposes

 

$

2.33

 

 

 

 

 

Operating Cash Flow

 

$

263.3

 

Tax rate changes after Committee approval (3)

 

(0.3

)

Restructuring and related charges

 

3.1

 

Adjusted OCF for AIP purposes

 

$

266.1

 

 

 

 

 

Consolidated Revenue

 

$

1,599.1

 

Foreign-exchange impact vs. budget (2)

 

(48.8

)

Adjusted Revenue for AIP purposes

 

$

1,550.4

 


(1)     A full discussion of components of Adjusted Diluted EPS is found in our fourth-quarter and full-year 2017 earnings press release filed on Form 8-K with the SEC on February 15, 2018.PROPOSAL 2

(2)         These items were not included

Proposal 2 — Advisory Vote to Approve Named Executive Officer Compensation

At our 2019 Annual Meeting, our advisory vote on executive pay was approved by 97.9% of the votes cast. The Board of Directors and its Compensation Committee believed this to be a confirmation that our executive pay accurately and appropriately rewards performance. Previously, a majority of our shareholders approved holding an advisory vote on executive compensation annually. Therefore, we are seeking an advisory vote approving executive compensation again this year.

As described more fully in the budgeted EPS target"Compensation Discussion and are deducted for purposes of comparing actual resultsAnalysis" section, our executive compensation program is designed to provide competitive executive pay opportunities tied to our performance targetsshort-term and long-term success and attract, motivate and retain the type of executive leadership that will help us achieve our strategic goals. The Compensation Committee continually reviews the compensation programs for our NEOs to ensure they achieve the AIP.desired goals of aligning our executive compensation structure with our shareholders' interests and current market practices.

(3)         Subsequent to approval of financial results byThis vote is advisory and not binding on the Company, the Board and the Compensation Committee. However, the Board and the Compensation Committee a tax rate adjustment resulted in a minor increase to OCF reportedare interested in the Earnings Release.opinions expressed by our shareholders on this proposal and will consider the outcome of the vote when making future compensation decisions for the NEOs. We encourage shareholders to review the Compensation Discussion and Analysis section of this Proxy Statement, for details regarding our executive compensation program.

Accordingly, the following resolution will be submitted for a shareholder vote at the 2020 Annual Meeting:

      "RESOLVED, That the shareholders of West Pharmaceutical Services, Inc. (the 'Company') approve, on an advisory basis, the compensation of the Company's Named Executive Officers, as disclosed in this Proxy Statement pursuant to Item 402 of Securities and Exchange Commission Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative disclosures."

The Board unanimously recommends a vote FOR the approval, on an advisory basis, of the Company's
Named Executive Officer compensation, as stated in the above resolution.

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Table of Contents

PROPOSAL 3GRAPHIC

Proposal 3 — Approval of Amendment to our Amended and Restated Articles of Incorporation to Increase the Number of Authorized Shares of Common Stock

Our Amended and Restated Articles of Incorporation currently authorize the issuance of up to 100 million shares of common stock, par value $0.25 per share. As of our record date, March 10, 2020, approximately 73.8 million shares were issued and outstanding. Additionally, as detailed under Item 12 of our 2019 Annual Report, we have approximately 7.2 million shares reserved for issuance under our various incentive and benefit plans. As a result, approximately 19 million shares of common stock remain available for future issuance.

The Board believes that it is in the best interests of the Company, its shareholders and other stakeholders under Pennsylvania law, to increase the number of authorized shares of common stock available for issuance to 200 million in order to provide the Company with greater flexibility in managing the Company, and ensure the ability of the Board of Directors to respond efficiently and effectively to any corporate needs that arise.

Increasing the number of authorized shares of common stock would give us additional resources and flexibility in several ways:

    Shares could be issued in connection with potential strategic transactions, such as mergers, acquisitions, partnerships, joint ventures, business combinations, dispositions and divestitures

    Shares would be available to be used in connection with public or private financing, especially when the benefits of stock issuance outweigh the benefits of raising funds by other means such as debt offerings

    Granting equity to our employees and meeting our future obligations under equity compensation and benefit plans, particularly, to attract and retain top quality talent to support our growing sales base and more innovative processes and product offerings

    Having the availability for a forward stock split, stock dividends or other recapitalization in the future, if, after examination by the Board and Management, it is determined to be in the best interests of shareholders and the Company

    Other general corporate programs or opportunities that may arise and require quick action by the Board, without having to seek additional shareholder approval

Having additional shares available for issuance will avoid the potential delays and expense of calling and holding a special meeting of shareholders to increase the number of authorized shares of common stock. In addition to increased costs, such delays could make it impossible for the Company to complete a desired transaction, financing or stock grant.

It is worth noting that we currently have no specifically planned acquisition, recapitalization, financing opportunity and we also have no understandings, agreements or commitments to issue common stock or reserve additional shares under any agreement or equity compensation plan. However, other than stock splits, our authorized shares have not increased for more than 20 years despite the significantly increased complexity in our business, increased number of employees being hired, increased equity pool for awards to attract the best talent, a general increase in the complexity of financing ongoing operations and the potential for inorganic growth.

Our share usage (measured as a percentage of issued shares versus authorized shares) exceeds the share usage of every member of our Business Segment Group, based on publicly available data as of the end of 2019. This immaterialusage is more than double the average and median of the usage by our Business Segment Group. Our Business Segment Group has six times as many shares available for issuance on average (and almost four times as many when measured against the median of the Business Segment Group). We are requesting doubling the number of shares authorized to avoid having to make additional requests in the near future. Even with the proposed 100 million share increase, wasour usage rate and number of shares available for issuance will still be less than the average and median of our Business Segment Group.

If the proposed amendment to our Amended and Restated Articles of Incorporation is approved by a majority of our shareholders, the additional shares may be used for all the purposes set forth in our Articles, and may be issued for such consideration and at such times as the Board determines, subject to the rights of shareholders to approve certain transactions under the Articles, applicable SEC rules and the rules of the New York Stock Exchange. The authorization of additional shares of common stock does not factored intoby itself, however, have any effect on the AIP payouts.rights of present shareholders. These shares shall be part of our existing class of common stock and, if issued, enjoy the same rights and privileges as other shares of common stock. The

2020 Annual Meeting and Proxy Statement   |   67


INDEPENDENT AUDITORSTable of Contents

GRAPHIC PROPOSAL 3

issuance of these shares, however, for corporate purposes other than a stock split or stock dividend could have a dilutive effect on ownership and voting rights of shareholders at the time of issuance.

If the Company's shareholders approve the proposed amendment to the Amended and Restated Articles of Incorporation, the number of authorized shares of common stock will be increased to 200 million and the Board will have the right to issue, subject to limitations under the law and the Amended and Restated Articles of Incorporation, these additional shares. The amendment will be immediately effective upon approval and filing with the Pennsylvania Department of State Corporation Bureau.

The Board unanimously recommends a vote FOR the amendment to our Amended and Restated Articles of Incorporation to Increase the Authorized Shares of Stock.

68   |   2020 Annual Meeting and Proxy Statement


Independent Auditors And Fees

Table of Contents

INDEPENDENT AUDITORS AND FEESGRAPHIC

Fees Paid to PricewaterhouseCoopers LLP

Independent Auditors and Fees

Fees Paid to PricewaterhouseCoopers LLP

The following table presents fees for audit and other services provided by PwC for years 20172019 and 2016.2018. All the services described in the following fee table were approved in conformity with the Audit Committee’sCommittee's pre-approval process, and the de minimis exception discussed below.

Type of Fees

 

2017

 

2016

 

Audit Fees

 

$

2,127,000

 

$

1,935,280

 

Audit-Related Fees

 

196,799

 

1,500

 

Tax Fees

 

150,404

 

224,014

 

All Other Fees

 

9,500

 

8,600

 

Total

 

$

2,483,703

 

$

2,169,394

 

Type of Fees


2019
2018

Audit Fees(1)

 $2,628,724 $2,459,651

Audit-Related Fees

 15,040 67,116

Tax Fees

 45,545 105,240

All Other Fees

 11,650 9,500

Total

 $2,700,959 $2,641,507
(1)
For 2019, this amount includes $100,000 in fees related to Accounting Standards Codification Topic 842 (Lease Accounting) and $75,000 in expenses related to the Audit Committee Policy on Pre-Approval of Audit and Permissible Non-Audit Services

Fees.

Audit Committee Policy on Pre-Approval of Audit and Permissible Non-Audit Services

Our Audit Committee has responsibility for appointing, setting compensation and overseeing the work of the Company’sCompany's independent registered public accounting firm. As part of this responsibility, the Audit Committee has establishedrevised its practices in 2019 to delegate authority to our Chief Financial Officer, Mr. Birkett, to, with the Audit Committee Chair's approval, engage PwC to perform services of less than $10,000 so long as the provision of those services would not impact the independence of PwC. Additionally, the Committee requires that Mr. Birkett report at each meeting regarding the nature and amount of any such services that we have retained. This revised process preserves independence with our registered public accounting firm, while permitting Management the flexibility to use that firm for non-audit fees and services. Subject to a policy to pre-approve all audit and permissiblede minimis exception for non-audit services providedset forth in applicable rules of the SEC, all other services performed by the independent registered public accounting firm subject to de minimis exceptions for non-audit services set forth in the applicable rules of the SEC.  Prior to engagement for the next year’s audit, Management will submitand related fees are submitted to the Audit Committee a list of services and related fees expected to be rendered by the independent registered public accounting firm during that yearin advance for pre-approval by the Committee.its approval. Those services must fall within one of the four following categories:categories discussed below.

Audit Fees include fees for audit work performed on the financial statements and internal control over financial reporting, and work that generally only the independent registered public accounting firm can reasonably be expected to provide, including statutory audits or financial audits for our subsidiaries or affiliates; services associated with SEC registration statements; periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters, consents); and assistance in responding to SEC comment letters.

Audit-Related Fees are fees for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are traditionally performed by the independent registered public accounting firm, including due diligence related to potential business acquisitions/divestitures, financial statement audits of employee benefit plans and special procedures required to meet certain regulatory requirements.

Tax Fees include fees for all services, except those specifically related to the audit of the financial statements, which are performed by the independent registered public accounting firm’sfirm's tax personnel and may include tax advice, tax analysis and compliance, and review of income and other tax returns.

All Other Fees are fees for those services not captured in any of the above three categories. The percentage of fees in this category that were approved by the Audit Committee under the de minimis exception was less than 1% of the total fees for 2017.2019.

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Audit Committee ReportGRAPHIC AUDIT COMMITTEE REPORT

Audit Committee Report

The Audit Committee reviewed the Company’sCompany's financial-reporting process on behalf of the Board. Management has the primary responsibility for the financial statements and the reporting process, including the system of internal controls. PwC, the Company’sCompany's independent registered public accounting firm for 2017,2020, is responsible for expressing its opinion on the conformity of the Company’sCompany's audited financial statements with generally accepted accounting principles and on the effectiveness of the Company’sCompany's internal control over financial reporting.

The Audit Committee has reviewed and discussed with Management and PwC the audited financial statements for the year ended December 31, 2017, Management’s2019, Management's assessment of the effectiveness of the Company’sCompany's internal control over financial reporting and PwC’sPwC's evaluation of the Company’sCompany's internal control over financial reporting.

The Audit Committee has discussed with PwC the matters that are required to be discussed by Statement on Auditing Standards No. 61 (Communication With Audit Committees), as amended (AICPA, Professional Standards, Vol. I AU §380), as adopted bypursuant to the Public Company Accounting Oversight Board in Rule 3200T.Board's Auditing Standard No. 131—Communications with Audit Committees. PwC has provided to the Committee the written disclosures and the letter required by the applicable requirements of the Public Company Accounting Oversight Board regarding PwC’sPwC's communications with the Audit Committee concerning independence and the Committee has discussed with PwC that firm’sfirm's independence from the Company.

The Audit Committee also considered whether the independent registered public accounting firm’sfirm's provision of non-audit services to the Company is compatible with the auditor’sauditor's independence. The Audit Committee has concluded that the independent registered public accounting firm is independent from the Company and its Management. Based on the considerations and discussions referred to above, the current members of the Audit Committee recommended to the Board that the audited financial statements for the year ended December 31, 20172019 be included in the Company’s 2017Company's 2019 Annual Report on Form 10-K.

Audit Committee:

Mark A. Buthman, Chair

Audit Committee




Thomas W. Hofmann, Chair
William F. Feehery

Thomas W. Hofmann

Paolo Pucci


Robert F. Friel (New member as of February 2020)
Deborah L. V. Keller
Douglas A. Michels

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Items to Be Voted On

Table of Contents

PROPOSAL 4Proposal 1 — Election of DirectorsGRAPHIC

Our shareholders are asked to consider 11 nominees for election to our Board to serve for a one-year term until the 2019 Annual Meeting of Shareholders, and until their successors, if any, are elected or appointed, or their earlier death, resignation, retirement, disqualification or removal.  The names of the 11 nominees for director, their current positions and offices, tenure as a Company director and their qualifications are set forth below.

All the nominees are current Company directors and all non-employee directors have been determined by our Board to be independent. Our Nominating and Corporate Governance Committee reviewed the qualifications of each of the nominees and recommended to our Board that each nominee be submitted to a vote of our shareholders at the Annual Meeting.  The Board approved the Committee’s recommendation at its meeting on February 13, 2018.

Each of the nominees has agreed to be named and to serve, and we expect each nominee to be able to serve if elected.  If any nominee is unable to serve, the Nominating and Corporate Governance Committee will recommend to our Board a replacement nominee.  The Board may then designate the replacement nominee to stand for election.  If you voted for the unavailable nominee, your vote will be cast for his or her replacement.

Director Qualifications and Biographies

As a leading manufacturer of pharmaceutical packaging and delivery systems with global operations, we believe that our Board should be comprised of members with a mix of backgrounds and expertise that enhances the ability of the directors collectively to understand the issues facing us and to fulfill the Board’s and its committees’ responsibilities.  Board members should have high standards of integrity and commitment, exhibit independence of judgment, be willing to ask hard questions of Management and work well with others.

Directors must devote sufficient time to our affairs and be free of conflicts of interest, engage in constructive discussion with each other and Management and demonstrate diligence and faithfulness in attending Board and committee meetings.

The Nominating and Corporate Governance Committee reviews annually with the Board the size and composition of the Board to determine the qualifications and areas of expertise needed to further enhance the composition of the Board.  As a result of this process, the Nominating and Corporate Governance Committee has identified the following specific criteria as important for potential director candidates:

·                  senior-level executive leadership at public companies, particularly companies with international operations;

·                  leadership in the healthcare or public health fields;

·                  science or technology backgrounds; and

·                  financial expertise.

The Committee works with Management and the other directors to attract candidates with those and other relevant qualifications.  The Committee strives to achieve a Board that reflects an appropriate balance and diversity of knowledge, experience, age, skills, expertise, gender and race.

Our Director Nominees

Mark A. Buthman

Age: 57

Director since 2011

Committees:

Audit

Nominating & Corp. Gov.

Mr. Buthman retired from Kimberly-Clark Corporation in December 2015, where he was Executive Vice President and Chief Financial Officer from January 2003 to April 2015.  He held positions of increasing responsibility in finance, strategy and operations after joining Kimberly-Clark in 1982. Mr. Buthman is a Board member of IDEX Corporation, Vice ChairmanProposal 4 — Ratification of the BoardAppointment of Directors of Pavillon, International and a member of the University of Iowa, Tippie College of Business Advisory Board.

Key Skills and Experience:

In addition to his financial and accounting experience while Chief Financial Officer at Kimberly-Clark, a global producer of branded productsPricewaterhouseCoopers LLP as Our Independent Registered Public Accounting Firm for the consumer, professional and healthcare markets, Mr. Buthman was responsible for real estate, investor relations, information technology, finance and accounting shared services and global procurement for the corporation.  Throughout his tenure at Kimberly-Clark, he served in a wide range of leadership roles in the areas of analysis, strategy and mergers and acquisitions.

Other public company directorships in the last five years2020:

IDEX Corporation

William F. Feehery, Ph.D.

Age: 47

Director since 2012

Committees:

Audit

Nominating & Corp. Gov.

Dr. Feehery has been President of Industrial Biosciences at DowDuPont (previously, E. I. du Pont de Nemours and Company) since November 2013.  He served as Global Business Director, DuPont Photovoltaic Solutions and previously as Global Business Director, Electronics Growth Businesses and as President of DuPont Displays, Inc. since joining DuPont in 2002.  Before joining DuPont, he was engaged in venture capital and was a management consultant for the Boston Consulting Group.

Key Skills and Experience:

Dr. Feehery brings extensive global public company leadership experience to the Board, having served in leadership roles throughout the DuPont organization, a provider of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.  His experience includes direct responsibility for business operations in over 20 countries and leading a global manufacturing business.  In addition, Dr. Feehery brings considerable technical experience with a Ph.D. in chemical engineering and over 15 years of experience in the technology industry.

Public company directorships in the last five years: None

Eric M. Green

Age: 48

Director since 2015

Committees:

None

Mr. Green has been our President and Chief Executive Officer since April 2015 and a member of our Board of Directors since May 2015.  Prior to joining the Company, Mr. Green worked at Sigma-Aldrich Corporation, where he served as Executive Vice President and President of the company’s Research Markets business unit since 2013.

Key Skills and Experience:

Mr. Green has significant public company experience having served as a corporate officer and member of the senior executive team of Sigma-Aldrich prior to joining the Company. Sigma-Aldrich was a leading life science and technology company focused on human health and safety.  Mr. Green has had research and development responsibility and managed a $1.4 billion business unit—the largest at that company.  Prior to that he held key positions of increasing responsibility, including international sales and operations, corporate strategic planning and positions in the UK, Ireland and Canada.  Mr. Green has a chemistry degree and masters of business administration.

Public company directorships in the last five years: None

Thomas W. Hofmann

Age: 66

Director since 2007

Committees:

Audit

Compensation

Finance

Mr. Hofmann retired from Sunoco, Inc.—an oil refining and marketing company—in 2008, where he was Senior Vice President and CFO from January 2002 to December 2008.  Mr. Hofmann served Sunoco in various other senior management roles since he joined in 1977.

Key Skills and Experience:

Mr. Hofmann provides substantial financial, corporate governance and management experience with expertise in all areas of finance—including tax, accounting, auditing, treasury, investor relations and budgeting. He is well-versed in strategic planning, risk-management and capital-market issues.  During a distinguished career with Sunoco, Inc., Mr. Hofmann was involved in a number of unique transactions, including significant acquisitions and divestitures.

Public company directorships in the last five years:

PVR Partners LP (public through September 2014)

Northern Tier Energy GP LLC (through May 2016)

Columbia Pipeline Partners LP (through February 2017)

Paula A. Johnson, M.D., MPH

Age: 58

Director since 2005

Committees:

Innovation & Technology

Dr. Johnson has been President of Wellesley College since July 2016. Before joining Wellesley, Dr. Johnson founded and served as the inaugural Executive Director of the Connors Center for Women’s Health and Gender Biology, as well as Chief of the Division of Women’s Health at Brigham and Women’s Hospital.  A cardiologist, Dr. Johnson was the Grace A. Young Family Professor of Medicine in the Field of Women’s Health—an endowed professorship named in honor of her mother—at Harvard Medical School. She was also Professor of Epidemiology at the Harvard T.H. Chan School of Public Health.

Key Skills and Experience:

Dr. Johnson brings a wealth of leading healthcare expertise to our Board.  She is a nationally recognized expert in cardiology and women’s and minority healthcare issues. In her role as Executive Director of the Connors Center for Women’s Health and Gender Biology and as Chief of the Division of Women’s Health at Brigham and Women’s Hospital, and a Professor of Medicine at Harvard Medical School and Professor of Epidemiology at the Harvard T.H. Chan School of Public Health, Dr. Johnson has built a novel, interdisciplinary research, education, clinical and policy program in women’s health whose mission is to improve the health of women and to transform their medical care. Dr. Johnson is the recipient of many awards recognizing her contributions to women’s and minority health and is featured as a national leader in medicine by the National Library of Medicine and is a member of the National Academy of Medicine and the American Academy of Arts and Sciences.  She has an extensive background in quality and safety in healthcare and in public health systems.

Public company directorships in the last five years: None

Deborah L. V. Keller

Age: 55

Director since 2017

Committees:

Finance

Innovation & Technology

Ms. Keller serves as a Principal at Black Frame Advisors, LLC, and recently retired as Chief Executive Officer of Covance Drug Development, a business segment of Laboratory Corporation of America Holdings. Prior to serving as CEO, Ms. Keller spent more than 28 years at Covance in a number of leadership roles, including Corporate Executive Vice President and Group President of Research and Development Laboratories, Corporate Senior Vice President and President of Discovery and Translational Services, and Vice President of Analytical Services in Europe. Prior to joining Covance, Ms. Keller began her career as an Analytical Chemist at Perrigo Company.

Key Skills and Experience:

Ms. Keller has general management experience, with overall sales and operations responsibility as well as a scientific background which includes chemistry and drug development spanning almost three decades.

Public company directorships in the last five years: None

Myla P. Lai-Goldman, M.D.

Age: 60

Director since 2014

Committees:

Finance

Innovation & Technology

Dr. Lai-Goldman has been Chief Executive Officer and President of GeneCentric Therapeutics, Inc.—a precision medicine company—since June 2011 and serves as director for the company.  She is also managing partner of Personalized Science, LLC, a clinical diagnostics consulting company that she founded in 2008. Previously, Dr. Lai-Goldman was Chief Executive Officer and Chief Scientific Officer of CancerGuide Diagnostics, Inc.  Before joining CancerGuide Diagnostics, she held various roles—including Executive Vice President, Chief Medical Officer and Chief Scientific Officer—at Laboratory Corporation of America Holdings and its predecessor company, Roche Biomedical Laboratories. Additionally, Dr. Lai-Goldman has been a venture partner at Hatteras Venture Partners since August 2011.

Key Skills and Experience:

Dr. Lai-Goldman is a recognized author and speaker on clinical diagnostics and has substantial leadership experience at companies like those that our Company serves.

Public company directorships in the last five years:

Sequenom, Inc.

Douglas A. Michels

Age: 61

Director since 2011

Committees:

Compensation

Innovation & Technology

Mr. Michels has served as President and Chief Executive Officer of OraSure Technologies, Inc. and a member of the OraSure Board of Directors from June 2004.  In December 2017, he announced his intention to resign from these positions effective March 31, 2018.  In February 2010, Mr. Michels was appointed to the Presidential Advisory Council on HIV/AIDS.  He previously served on the Board of the National Blood Foundation, the Board of the National Committee for Quality Health Care and the Coalition to Protect America’s Health Care.

Key Skills and Experience:

Mr. Michels brings considerable expertise and executive leadership skills in the pharmaceutical, medical device and diagnostic industry having spent 13 years with OraSure Technologies, Inc., 19 years with Johnson & Johnson and seven years with Abbott Laboratories.

Public company directorships in the last five years:

OraSure Technologies, Inc. (expected through March 31, 2018)

Paolo Pucci

Age: 56

Director since 2016

Committees:

Audit

Compensation

Mr. Pucci is Chief Executive Officer of ArQule, Inc., a biopharmaceutical company engaged in the research and development of targeted therapeutics. Prior to joining ArQule in 2008, Mr. Pucci worked at Bayer A.G., where he served in a number of leadership capacities including Senior Vice President of the Global Specialty Medicine Business Unit and was a member of the Bayer Pharmaceuticals Global Management Committee.

Key Skills and Experience:

Mr. Pucci provides a wealth of knowledge to our Board regarding biopharmaceutical markets and experience as a chief executive officer of a publicly-traded company.  His international background also adds to the diverse knowledge base of our Board.

Mr. Pucci is the only member of our Board who as of the date of the Annual Meeting is also expected to be serving as a Chief Executive Officer of a public company, ArQule.  While Mr. Pucci currently serves on two additional boards, one of those is ArQule.  We believe that it is important to have a sitting public-company CEO on our Board.  Since Mr. Pucci has joined our Board, he has been able to devote significant time and resources to us.  Mr. Pucci’s expertise in new drug development, his executive responsibilities, his experience working for large multinationals and his non-U.S. training are valuable additions to our Board.

Public company directorships in the last five years:

ArQule Inc.

NewLink Genetics Inc.

Dyax Inc. (through 2016)

[CONTINUED ON NEXT PAGE]

John H. Weiland

Age: 62

Director since 2007

Committees:

Compensation

Finance

Mr. Weiland served as President and Chief Operating Officer of C. R. Bard, Inc. — a medical-device company — from August 2003 to December 2017, when Bard was acquired by Becton, Dickinson and Company.  In connection with that acquisition, Mr. Weiland retired.  At Bard, he served as Group President from April 1997 to August 2003 and Group Vice President from March 1996 to April 1997. Mr. Weiland was elected to the Bard Board of Directors in April 2005 and became Vice Chairman of the Board in 2016.  He received the prestigious Horatio Alger Award in 2012 and serves as a director of the Horatio Alger Association.

Key Skills and Experience:

Mr. Weiland has considerable expertise with over 30 years in the healthcare industry. He brings executive leadership in medical-device company operations and significant international business expertise to the Board.  As President and Chief Operating Officer at C. R. Bard, Inc., Mr. Weiland had responsibility for all of its business operations.

Public company directorships in the last five years:

C. R. Bard, Inc. (through December 2017)

Patrick J. Zenner

Age: 71

Director since 2002

Chairman since 2015

Committees:

Nominating & Corp. Gov.

Mr. Zenner was elected Chairman of the Board effective July 1, 2015.  He retired from Hoffmann-La Roche Inc., North America—the prescription drug unit of the Roche Group, a leading research-based healthcare enterprise—in 2001, where he served as President and Chief Executive Officer from 1993 to 2001.  He served as Interim Chief Executive Officer of CuraGen Corporation from May 2005 through March 2006.  Since then, Mr. Zenner was a director and Chairman of the Board of Exact Sciences Corporation until July 2010, and served as its Interim CEO from July 2007 to March 2008. Currently, Mr. Zenner serves as Chairman of the Board of ArQule, Inc. and a director of Selecta Biosciences, Inc.

Key Skills and Experience:

Mr. Zenner provides more than 40 years of experience and expertise in the pharmaceutical industry to the Board. Since retiring from Hoffmann-La Roche, Mr. Zenner has devoted his considerable industry expertise and corporate governance knowledge to small and early-stage pharmaceutical and technology companies in various capacities, including board member, chairman and interim CEO.

Public company directorships in the last five years:

ArQule, Inc.

Selecta Biosciences, Inc.

The Board unanimously recommends a vote FOR the election of each of these nominees as directors.

Proposal 2 — Advisory Vote to Approve Named Executive Officer Compensation

At our 2017 Annual Meeting, our advisory vote on executive pay passed by a vote of 95.9%.  The Board of Directors and its Compensation Committee believed this to be a confirmation that our executive pay accurately and appropriately rewards performance.

Additionally, at our 2017 Annual Meeting, a majority of our shareholders approved holding an advisory vote on executive compensation annually.  Therefore, we are seeking an advisory vote approving executive compensation this year.

As described more fully in the “Compensation Discussion and Analysis” section, our executive compensation program is designed to provide competitive executive pay opportunities tied to our short-term and long-term success and attract, motivate and retain the type of executive leadership that will help us achieve our strategic goals.  The Compensation Committee continually reviews the compensation programs for our NEOs to ensure they achieve the desired goals of aligning our executive compensation structure with our shareholders’ interests and current market practices.

This vote is advisory and not binding on the Company, the Board and the Compensation Committee.  However, the Board and the Compensation Committee are interested in the opinions expressed by our shareholders on this proposal and will consider the outcome of the vote when making future compensation decisions for the Named Executive Officers.    We encourage shareholders to review the Compensation Discussion and Analysis section of this Proxy Statement, for details regarding our executive compensation program.

Accordingly, the following resolution will be submitted for a shareholder vote at the 2018 Annual Meeting:

“RESOLVED, That the shareholders of West Pharmaceutical Services, Inc. (the ‘Company’) approve, on an advisory basis, the compensation of the Company’s Named Executive Officers, as disclosed in this Proxy Statement pursuant to Item 402 of Securities and Exchange Commission Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative disclosures.”

The Board unanimously recommends a vote FOR the approval, on an advisory basis, of the Company’s Named Executive Officer Compensation, as stated in the above resolution.

Proposal 3 — Ratification of the Appointment of PricewaterhouseCoopers LLP as Our Independent Registered Public Accounting Firm for 2018

The Audit Committee is responsible for the appointment, compensation, retention, evaluation and oversight of the Company’sCompany's independent registered public accounting firm. This Committee annually evaluates the independent registered public accounting firm’sfirm's qualifications, performance and independence and assesses whether to continue to retain the firm or select a different firm.

As part of this review, the Audit Committee reviews PwC’sPwC's capabilities and costs.costs, including consideration of non-audit fees and services. Based on this review, the Audit Committee has determined that PwC has performed well, in a cost-effective manner, has a long-standing institutional memory, acts independently of Management, and provides critical input to the Audit Committee. The Committee also considers the impact of changing auditors when assessing whether to retain the current auditor. Therefore, the Audit Committee has appointed PwC as our independent registered public accounting firm for 2018.2020. Although shareholder approval for this appointment is not required, the Audit Committee and our Board are submitting the selection of PwC for ratification to obtain the views of shareholders and as a matter of good corporate governance. If the appointment is not ratified, the Audit Committee will reconsider whether or not to retain PwC. Representatives of PwC will be present at the 20182020 Annual Meeting to answer questions and will have the opportunity to make a statement if they desire to do so.desire.

The Board unanimously recommends a vote FOR the ratification of the appointment of PricewaterhouseCoopersPricewaterhouse Coopers LLP as our independent registered public accounting firm for 2018.2020.

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GRAPHIC VOTING AND OTHER INFORMATION

Voting and Other Information

Shareholders Entitled to Vote

All shareholders of record of our common stock, par value $.25 per share, at the close of business on March 10, 2020, are entitled to receive the Notice and to vote their shares at the meeting. As of that date, 73,844,575 shares of our common stock were outstanding. Each share is entitled to one vote on each matter properly brought to the meeting.

How You Can Vote

If you are a registered shareholder, you may vote at the Annual Meeting by delivering a proxy card in person or you may cast your vote in any of the following ways:

    Logging on towww.ProxyVote.com

    Mailing your signed proxy card or voting instruction card to the address provided

    Calling toll-free from the United States, U.S. territories and Canada to 1-800-690-6903

If the meeting is held virtually, West will endeavor to permit voting by electronic means during the course of the meeting in accordance with applicable Pennsylvania law, SEC guidance and NYSE rules. This method of voting, if applicable, will be communicated separately by the Company.

If you hold shares of the Company in "Street Name," please follow the voting instructions of the financial institution at which you have an account holding shares of the Company.

Deadline for Voting.    Mailed proxy and voting instruction cards must be received before the meeting. If you are a registered shareholder and attend the meeting, you may deliver your completed proxy card in person, if physical meeting location and the law permits. "Street Name" shareholders who wish to vote at the meeting will need to obtain a proxy form from the institution that holds their shares. The deadline for voting by telephone or www.proxyvote.com is 11:59 PM Eastern Time on May 4, 2020.

How Your Shares Will Be Voted

In each case, for registered shareholders, your shares will be voted as you instruct. If you return a signed proxy card, but do not provide voting instructions, your shares will be voted FOR each of the proposals. You may revoke or change your vote any time before the proxy is exercised by filing with our Corporate Secretary a notice of revocation or a duly executed proxy bearing a later date. Attendance at the meeting will not by itself revoke a previously granted proxy. If your shares are held in a stock brokerage account or by a bank or other holder of record, you are considered the "beneficial owner" of shares held in "Street name." Please refer to "Broker Voting and Votes Required" below to determine how these shares will be counted for each proposal.

Plan Participants.    Any shares you may hold in the West Pharmaceutical Services, Inc. 401(k) Plan or the West Contract Manufacturing Savings and Retirement Plan have been added to your other holdings on your proxy card.

Your completed proxy card serves as voting instructions to the trustee of those plans. You may direct the trustee how to vote your plan shares by submitting your proxy vote for those shares, along with the rest of your shares, by Internet, phone or mail, all as described on the enclosed proxy card.

If you do not instruct the trustee how to vote, your plan shares will be voted by the trustee in the same proportion that it votes shares in other plan accounts for which it received timely voting instructions.

Broker Voting and Votes Required

For holders in "Street Name," the Notice would have been made available to you by your broker, bank or other holder of record who is considered the shareholder of record of those shares. As the beneficial owner, you may direct your broker, bank or other holder of record on how to vote your shares by using the proxy card included in the materials made available to you or by

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VOTING AND OTHER INFORMATIONGRAPHIC

following their instructions for voting on the Internet. A broker non-vote occurs when a broker or other nominee that holds shares for another does not vote on an item because the nominee does not have discretionary voting authority for that item and has not received instructions from the owner of the shares. Although there is no controlling precedent under Pennsylvania law regarding the treatment of broker non-votes in certain circumstances, we intend to apply the principles outlined in the table below:

Proposal
Votes Required
Treatment of Abstentions and Broker
Non-Votes


Broker
Discretionary
Voting
Proposal 1 –Election of DirectorsAs this is an uncontested election, the number of votes for a director must exceed the number of votes against a directorAbstentions and broker non-votes will not be considered in determining the outcome of the proposalNo
Proposal 2 –Advisory Vote to Approve Named Executive Officer CompensationMajority of the shares present and entitled to vote on the proposal in person or represented by proxyAbstentions will have the effect of negative votes and broker non-votes will not be considered in determining the outcome of the proposalNo
Proposal 3 – Approval of Amendment to our Amended and Restated Articles of Incorporation to Increase Authorized Shares of Common Stock from 100 Million to 200 MillionMajority of the shares present and entitled to vote on the proposal in person or represented by proxyAbstentions will have the effect of negative votes and broker non-votes will not be considered in determining the outcome of the proposalNo
Proposal 4 – Ratification of the Appointment of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for 2020Majority of the shares present and entitled to vote on the proposal in person or represented by proxyAbstentions and broker non-votes will have the effect of negative votesYes

Proxy Solicitation.    We have retained Georgeson LLC, a proxy solicitation company, with respect to the proxy being solicited by this Proxy Statement and expect to pay $8,500 for the solicitation services plus related fees and expenses.

Quorum

Other Information

Stock Ownership

Based onWe must have a reviewquorum to conduct business at the 2020 Annual Meeting. A quorum consists of filings with the SEC, we have determined thatpresence at the persons listed below hold more than 5%meeting either in person or represented by proxy of the holders of a majority of the outstanding shares of our common stock asentitled to vote. For the purpose of March 6, 2018.  Unless otherwise stated, each holder has sole votingestablishing a quorum, abstentions, including brokers holding customers' shares of record who cause abstentions to be recorded at the meeting, and dispositive power overbroker non-votes are considered shareholders who are present and entitled to vote, and count toward the shares listed.

Name and Address of Beneficial Owner

 

Shares

 

Percent of Class

 

T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202

 

9,309,447

(1)

12.5

%

The Vanguard Group, Inc.
100 Vanguard Boulevard
Malvern, PA 19355

 

6,788,283

(2)

9.1

%

BlackRock, Inc.
55 East 52nd Street
New York, NY 10022

 

6,230,224

(3)

8.4

%

Franklin Resources, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906

 

3,694,240

(4)

5.0

%

Neuberger Berman Group LLC
605 Third Avenue
New York, NY 10158

 

3,410,521

(5)

4.6

%


(1)    Includes sole voting power over 2,316,957 shares and sole dispositive power over 9,309,447shares.quorum.

(2)    Includes sole voting power over 41,389 shares, shared voting power over 8,885 shares, shared dispositive power over 44,472 shares

Electronic Availability of Proxy Statement and Annual Report

We are pleased to be distributing our proxy materials to certain shareholders via the Internet under the "notice and sole dispositive power over 6,743,811access" approach permitted by the rules of the SEC. This method conserves natural resources and reduces our costs of printing and mailing while providing a convenient way for shareholders to review our materials and vote their shares.

(3)    Includes sole voting power over 5,965,551 shares and sole dispositive power over all shares listed.On March 25, 2020, we mailed a "Notice of Internet Availability" to participating shareholders, which contains instructions on how to access the proxy materials on the Internet.

(4)    Franklin Advisers, Inc. (“FAS”) is an investment management subsidiaryIf you would like to receive a printed copy of Franklin Resources, Inc. (“FRI”).  FRI treats FAS as having sole investment discretion and voting authorityour proxy materials, we will send you one free of charge. Instructions for all shares listed.  Additionally, Charles B, Johnson and Rupert H. Johnson (“Principal FRI Shareholders”)requesting such materials are each shareholders of more than 10% of FRI, but also do not claim investment or voting interestsincluded in the Company stock held by FRI.  However, FRI believes that FASNotice.

This Proxy Statement and our 2019 Annual Report are available at:
http://investor.westpharma.com/financial-information/annual-reports-and-proxy

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GRAPHIC VOTING AND OTHER INFORMATION

Mailings to Multiple Shareholders at the Same Address

We have adopted a procedure called "householding" for making the Proxy Statement and the Principal FRI Shareholders are a “group” for purposes of applicable securities law.

(5)    Includes shared dispositive power with respect to 3,410,521 shares and shared voting power with respect to 3,388,033 shares.

The table on the following page shows the number of shares of our common stock beneficially owned as of March 6, 2018, by each of our directors, each NEO and all current directors and executive officers as a group.  For executive officers, in addition to shares owned directly, the number of shares includes: (a) vested shares held in employee participant accounts under our 401(k) plan, Employee Deferred Compensation Plan and Employee Stock Purchase Plan; and, (b) time-vested restricted stock and RSUs held in various incentive plan accounts, unless receipt of those shares has been deferred.  For non-employee directors, in addition to shares owned directly, the common stock column includes vested deferred stock and stock-settled stock units awarded under the Director Deferred Compensation Plan.

Name

 

Common
Stock

 

Options Exercisable
Within 60 Days

 

Percent
of Class

 

Mark A. Buthman

 

32,738

 

 

*

 

William J. Federici

 

207,351

 

418,796

 

*

 

William F. Feehery

 

23,166

 

 

*

 

Karen A. Flynn

 

18,729

 

139,364

 

*

 

Eric M. Green

 

60,247

 

272,025

 

*

 

Thomas W. Hofmann

 

36,580

 

 

*

 

Paula A. Johnson

 

43,090

 

 

*

 

Deborah L. V. Keller

 

1,967

 

 

*

 

Myla P. Lai-Goldman

 

11,298

 

 

*

 

Douglas A. Michels

 

35,784

 

 

*

 

George L. Miller

 

3,045

 

36,844

 

*

 

David A. Montecalvo

 

1,529

 

8,182

 

*

 

Paolo Pucci

 

3,045

 

 

*

 

John H. Weiland

 

67,996

 

 

*

 

Patrick J. Zenner

 

71,532

 

 

*

 

All directors and executive officers as a group (20 persons)

 

684,868

 

1,013,662

 

2.7

%


* Less than one percent of outstanding shares.

Section 16(a) Beneficial Ownership Reporting Compliance

During the last fiscal year, due to administrative processing and delays by the Company, Dr. Johnson, was the only director to file a late Form 4 in December 2017.

Additionally, Ms. Favorite filed two late Form 4s during November and December 2017 due to administrative delay.

20172019 Annual Report available. Householding means that shareholders who share the same last name and SEC Filingsaddress will receive only one copy of the materials, unless we are notified that one or more of these shareholders wishes to continue receiving additional copies.

We will continue to make a proxy card available to each shareholder of record. If you prefer to receive multiple copies of the proxy materials at the same address, please contact us in writing or by telephone: Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341, (610) 594-3319.

2019 Annual Report and SEC Filings

Our financial statements for the year ended December 31, 20172019 are included in our 20172019 Annual Report, which we will make available to shareholders at the same time as this Proxy Statement. Our 20172019 Annual Report and this Proxy Statement are posted on our website at http://investor.westpharma.com/phoenix.zhtml?c=118197&p=irol-reportsannual and are available from the SEC at its website atwww.sec.gov and are posted on our website athttp://investor.westpharma.com/financial-information/annual-reports-and-proxy. If you do not have access to the Internet or have not received a copy of our 20172019 Annual Report, you may request a copy of it or any exhibits thereto without charge by writing to our Corporate Secretary at West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341.

2019 Shareholder Proposals or Nominations

2021 Shareholder Proposals or Nominations

Under SEC rules, if a shareholder wants us to include a proposal in our Proxy Statement and form of proxy for presentation at the 20192021 Annual Meeting, the proposal must be received by us at our principal executive offices by November 28, 201825, 2020 and comply with the procedures of Rule 14a-8 under the Securities Exchange Act of 1934.

The proposal should be sent to the attention of the Corporate Secretary in writing: West Pharmaceutical Services, Inc., 530 Herman O.

West Drive, Exton, PA 19341; or by telephone: (610) 594-3319.

Our Bylaws containset forth procedures that a shareholder must follow to nominate persons for election as directors or to introduce an item of business at an annual meetingAnnual Meeting of shareholders. Nominations for director nominees or an item of business to be conducted must be submitted in writing to the Corporate Secretary of the Company at our executive offices and should be mailed by certified mail, return receipt requested. We must receive the notice of your intention to introduce a nomination or to propose an item of business at our 20192021 Annual Meeting not less than 90 days prior to the anniversary date of this year’syear's Annual Meeting. If, however, we fail to disclose the date of next year’syear's meeting at least 21 days in advance, we must receive your notice within seven days following the announcement of the meeting (but in no event, later than four days before the meeting date).

The nomination must contain information about the nominees as specified in our Bylaws. The notice must include information specified in our Bylaws, including information concerning the nominee or proposal, as the case may be, and information about the shareholder’sshareholder's ownership of and agreements related to our shares.

Except as otherwise required by law, the ChairmanChair of the meeting may refuse to allow the transaction of any business, or to acknowledge the nomination of any person, not made in compliance with our Bylaws. You may obtain a copy of our Bylaws by contacting our Corporate Secretary at West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341.

Other Matters

Other Matters

Management is not aware of any other matters that will be presented at the 20182020 Annual Meeting, and our Bylaws do not allow proposals to be presented at the meeting unless they were properly presented to us before February 2, 2018.7, 2020. However, if any other matter that requires a vote is properly presented at the meeting, the proxy holders will vote as recommended by the Board or, if no recommendation is given, in their own discretion.

74   |   2020 Annual Meeting and Proxy Statement


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VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up untilinformation. Vote by 11:59 P.M. Eastern Time the day before the cut-off date or meeting date.on May 4, 2020 for shares held directly and by 11:59 P.M. Eastern Time on May 1, 2020 for shares held in a Plan. Have your proxy card in hand when you access the website and follow the instructions to obtain your records and to create an electronic voting instruction form. WEST PHARMACEUTICAL SERVICES, INC. C/O BROADRIDGE P.O. BOX 1342 BRENTWOOD, NY 11717 ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up untilinstructions. Vote by 11:59 P.M. Eastern Time the day before the cut-off date or meeting date.on May 4, 2020 for shares held directly and by 11:59 P.M. Eastern Time on May 1, 2020 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: E36177-P02561E89660-TBD KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. WEST PHARMACEUTICAL SERVICES, INC. The Board of Directors recommends you vote FOR the following: 1. Election of Directors; Nominees: For Against Abstain ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 1a. Mark A. Buthman The Board of Directors recommends you vote FOR proposals 2, 3 and 3. For Against Abstain4. 1b. William F. Feehery For Against Abstain ! ! ! ! ! ! 1c. Eric M. GreenRobert Friel 2. Advisory vote to approve named executive officer compensation; To approve an amendement to Article 5 of our Amended and Restated Articles of Incorporation to increase the number of authorized shares of common stock from 100 million to 200 million; and 1d. Eric M. Green 3. 1e. Thomas W. Hofmann ! ! ! 4. To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2018. 1d. Thomas W. Hofmann 3. 1e.2020. 1f. Paula A. Johnson 1g. Deborah L. V. Keller NOTE: Such other business as may properly come before the meeting or any adjournment thereof. 1f. Deborah L. V. Keller 1g.1h. Myla P. Lai-Goldman 1h.1i. Douglas A. Michels 1i.1j. Paolo Pucci 1j. John H. Weiland 1k. Patrick J. Zenner Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date

 


Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com. E36178-P02561E89661-TBD WEST PHARMACEUTICAL SERVICES, INC. 530 Herman O. West Drive Exton, Pennsylvania 19341 This proxy is solicited by the Board of Directors The undersigned hereby appoints George L. Miller and Ryan M. Metz as Proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on the reverse side, all the shares of common stock of West Pharmaceutical Services, Inc., held of record by the undersigned on March 6, 2018,10, 2020, at the Annual Meeting of Shareholders to be held on May 1, 20185, 2020 or any postponement or adjournment thereof. The Annual Meeting of Shareholders will be held at 9:30 AM EDT, on May 5, 2020 at 530 Herman O. West Drive, Exton, Pennsylvania 19341. This Proxy, when properly executed, will be voted in the manner directed herein by the undersigned shareholder. If no direction is made, this Proxy will be voted FOR Proposals 1, 2, 3 and 3.4. Continued and to be signed on reverse side

 

*** Exercise Your Right to Vote *** Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to Be Held on May 5, 2020. WEST PHARMACEUTICAL SERVICES, INC. You are receiving this communication because you hold shares in the company named above. This is not a ballot. You cannot use this notice to vote these shares. This communication presents only an overview of WEST PHARMACEUTICAL SERVICES, INC. C/O BROADRIDGE P.O. BOX 1342 BRENTWOOD, NY 11717 the more complete proxy materials that are available to you on the Internet. You may view the proxy materials online at www.proxyvote.com or easily request a paper copy (see reverse side). We encourage you to access and review all of the important information contained in the proxy materials before voting. proxy materials and voting instructions. E89663-[TBD] See the reverse side of this notice to obtain Meeting Information Meeting Type:Annual Meeting For holders as of:March 10, 2020 Date: May 5, 2020Time: 9:30 AM EDT Location: 530 Herman O.West Drive Exton, Pennsylvania 19341

Before You Vote How to Access the Proxy Materials How To Vote Please Choose One of the Following Voting Methods E89664-[TBD] Vote In Person: Many shareholder meetings have attendance requirements including, but not limited to, the possession of an attendance ticket issued by the entity holding the meeting. Please check the meeting materials for any special requirements for meeting attendance. At the meeting, you will need to request a ballot to vote these shares. Vote By Internet: To vote now by Internet, go to www.proxyvote.com. Have the information that is printed in the box marked by the arrow (located on the following page) available and follow the instructions. Vote By Mail: You can vote by mail by requesting a paper copy of the materials, which will include a proxy card. XXXX XXXX XXXX XXXX Proxy Materials Available to VIEW or RECEIVE: NOTICE AND PROXY STATEMENTANNUAL REPORT How to View Online: Have the information that is printed in the box marked by the arrow(located on the following page) and visit: www.proxyvote .com. How to Request and Receive a PAPER or E-MAIL Copy: If you want to receive a paper or e-mail copy of these documents, you must request one. There is NO charge for requesting a copy. Please choose one of the following methods to make your request: 1) BY INTERNET:www.proxyvote.com 2) BY TELEPHONE: 1-800-579-1639 3) BY E-MAIL*:sendmaterial@proxyvote.com * If requesting materials by e-mail, please send a blank e-mail with the information that is printed in the box marked by the arrow(located on the following page) in the subject line. Requests, instructions and other inquiries sent to this e-mail address will NOT be forwarded to your investment advisor. Please make the request as instructed above on or before April 21, 2020 to facilitate timely delivery. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

The Board of Directors recommends you vote FOR the following: 1.Election of Directors; Nominees: The Board of Directors recommends you vote FOR proposals 2, 3 and 4. 1a. Mark A. Buthman 2. Advisory vote to approve named executive officer compensation; 1b. William F. Feehery 3. To approve an amendment to Article 5 of our Amended and Restated Articles of Incorporation to increase the number of authorized shares of common stock from 100 million to 200 million; and 1c. Robert Friel 1d. Eric M. Green 1e. Thomas W. Hofmann 4. To ra ti fy th e ap p oi nt me nt of PricewaterhouseCoopers LLP as our independent registered public accounting firm for 2020. 1f. Paula A. Johnson 1g. Deborah L. V. Keller NOTE: Such other business as may properly come before the meeting or any adjournment thereof. 1h. Myla P. Lai-Goldman 1i. Douglas A. Michels 1j. Paolo Pucci 1k. Patrick J. Zenner E89665-[TBD] Voting Items

E89666-[TBD]

WEST PHARMACEUTICAL SERVICES, INC. Annual Meeting of Shareholders BALLOT The undersigned hereby votes, as designated below, all the shares of common stock of West Pharmaceutical Services, Inc. held of record by the undersigned on March 10, 2020, at the Annual Meeting of Shareholders to be held on May 5, 2020. This Ballot when properly executed will be voted in the manner directed herein by the undersigned shareholder. Please mark your votes as in this example. Proposal 1 - Election of 11 Directors For Against Abstain Nominees: Mark A. Buthman William F. Feehery Robert Friel Eric M. Green Thomas W. Hofmann Paula A. Johnson Deborah L. V. Keller Myla P. Lai-Goldman Douglas A. Michels Paolo Pucci Patrick J. Zenner Proposal 2 – Advisory Vote to Approve Named Executive Officer Compensation For Against Abstain    Proposal 3 – Approval of Amendment to Article 5 of our Amended and Restated Articles of Incorporation to increase the number of authorized shares of common stock from 100 million to 200 million    For Against Abstain

Proposal 4 – Ratification of the Appointment of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for the 2020 Year For Against Abstain    PRINT NAME: Please print name exactly as it appears on the records of the Company’s registrar and transfer agent. SIGNATURE(S) DATE Please sign exactly as your name appears above. When signing as attorney, executor, administrator, trustee, guardian, or in any other representative capacity, please so indicate.