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NOTICE OF 2017 ANNUALMEETING OF SHAREHOLDERS AND PROXY STATEMENT PolyOne Corporation TABLE OF CONTENTS MESSAGE FROM OUR CEO ............................................................................................................................................................................................i NOTICE OF 2017 ANNUAL MEETING OF SHAREHOLDERS..........................................................................................................................ii PROXY SUMMARY............................................................................................................................................................................................................1 PROXY STATEMENT .......................................................................................................................................................................................................5 PROPOSAL 1— ELECTION OF BOARD OF DIRECTORS .................................................................................................................................6 PROPOSAL 2— ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION .........................................11 PROPOSAL 3— ADVISORY VOTE TO APPROVE THE FREQUENCY OF FUTURE ADVISORY VOTES TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION .....................................................................................................12 PROPOSAL 4— APPROVAL OF THE POLYONE CORPORATION 2017 EQUITY AND INCENTIVE COMPENSATION PLAN .............................................................................................................................................................................13 PROPOSAL 5— RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..................................................................................................................................................................................................................30 CORPORATE GOVERNANCE.....................................................................................................................................................................................33 2016 NON-EMPLOYEE DIRECTOR COMPENSATION....................................................................................................................................39 OWNERSHIP OF POLYONE SHARES.....................................................................................................................................................................41 COMPENSATION DISCUSSION AND ANALYSIS ...............................................................................................................................................43 Executive Summary....................................................................................................................................................................................43 Executive Compensation Philosophy and Objectives..................................................................................................................47 What We Pay and Why: Elements of Compensation ..................................................................................................................49 Other Aspects of Our Compensation Programs .............................................................................................................................55 EXECUTIVE COMPENSATION..................................................................................................................................................................................59 2016 Summary Compensation Table .................................................................................................................................................59 2016 Grants of Plan-Based Awards.....................................................................................................................................................62 Outstanding Equity Awards at 2016 Fiscal Year-End.................................................................................................................64 2016 Option Exercises and Stock Vested..........................................................................................................................................67 2016 Pension Benefits...............................................................................................................................................................................67 2016 Nonqualified Deferred Compensation ...................................................................................................................................68 Potential Payments Upon Termination or Change of Control .................................................................................................70 Compensation Committee Interlocks .................................................................................................................................................74 Policy on Related Person Transactions .............................................................................................................................................74 Risk Assessment of the Compensation Programs.........................................................................................................................74 Compensation Committee Report........................................................................................................................................................75 MISCELLANEOUS PROVISIONS...............................................................................................................................................................................76 APPENDIX A...................................................................................................................................................................................................................A-1 APPENDIX B...................................................................................................................................................................................................................B-1 MESSAGE FROM OUR CEO March 31, 2017 Dear Fellow Shareholder: You are cordially invited to attend the PolyOne Corporation Annual Meeting of Shareholders (the “Annual Meeting”), which will be held at 9:00 a.m. on Thursday, May 11, 2017, at PolyOne Corporation’s corporate headquarters located at PolyOne Center, 33587Walker Road, Avon Lake, Ohio 44012.
Outstanding Equity Att wards at 2016 Fiscal Year-End Option Exercise Price ($) ((e)) Option Expiration Date ((f))ff Market Value of Shares or Units of Stock That Have Not Vested ($) ((h)) Equity Incentivtt e Plan Awards: Market or Payout Value of Unearned Shares, Units ot r Othertt Rights ttt hatt t Have Not Vested ($) ((jj)) - - 8,510 (1) 272,660 - - - 24,671 (2) 790,459 - - - 35,272 (3) 1,130,115 - - - - 51,756 (6) 1,658,262 - - - 51,756 (6) 1,658,262 30,500 (8) 14.81 2/16/2021 - - 48,800 (9) 14.61 2/14/2022 - - 30,700 (10) 23.08 2//15//2023 - - 13,667 (11) 6,833 (11) 35.07 2//11//2024 - - 66,700 (12) 38.27 2//4//2025 - - 105,200 (13) 24.98 2/10/2026 - - - 7,266 (1) 232,803 - - - 6,892 (2) 220,820 - 8,426 (3) 269,969 - 11,600 (11) 5,800 (11) 35.07 2/11/2024 - 18,700 (12) 38.27 2//4//2025 - - 25,150 (13) 24.98 2//10//2026 - - - - 4,360 (1) 139,694 - - - 25,935 (4) 830,957 - - - 4,114 (2) 131,813 - - - 5,026 (3) 161,033 - - - - 25,935 (7) 830,957 13,700 (10) 23.08 2/15/2023 - - 6,934 (11) 3,466 (11) 35.07 2/11/2024 - - 11,200 (12) 38.27 2/4/2025 - - 15,000 (13) 24.98 2//10//2026 - - - - 3,222 (1) 103,233 - - - 2,593 (5) 83,080 - - - 3,395 (2) 108,776 - - - 4,316 (3) 138,285 5,200 (11) 2,600 (11) 35.07 2/11/2024 - - 9,200 (12) 38.27 2/4/2025 - - 12,900 (13) 24.98 2//10//2026 - - - - 3,634 (1) 116,433 - 3,500 (2) 112,140 - 4,569 (3) 146,391 - 23,300 (9) 14.61 2//14//2022 - - 13,700 (10) 23.08 2/15/2023 - 5,800 (11) 2,900 (11) 35.07 2/11/2024 - - 9,300 (12) 38.27 2/4/2025 - 13,550 (13) 24.98 2//10//2026 - - 37,760 (1) 1,209,830 - 137,000 (10) 23.08 2//15//2023 - 60,667 (11) 30,333 (11) 35.07 2/11/2024 - - - - S.D.