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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14AProxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934 (Amendment No. )

FiledbytheRegistrant☒ FiledbyaPartyotherthantheRegistrant ☐

Checktheappropriatebox: ☐ PreliminaryProxyStatement ☐ Confidential,forUseoftheCommissionOnly(aspermittedbyRule14a-6(e)(2))☒ DefinitiveProxyStatement ☐ DefinitiveAdditionalMaterials ☐ SolicitingMaterialunder§240.14a-12

STONERIDGE, INC.(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing proxy statement, if other than the Registrant)PaymentofFilingFee(Checktheappropriatebox):

☒ Nofeerequired. ☐ FeecomputedontablebelowperExchangeActRules14a-6(i)(1)and0-11. (1) Titleofeachclassofsecuritiestowhichtransactionapplies:

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(3) PerunitpriceorotherunderlyingvalueoftransactioncomputedpursuanttoExchangeActRule0-11(setforththeamountonwhichthefilingfeeiscalculatedandstatehowitwasdetermined):

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☐ Feepaidpreviouslywithpreliminarymaterials. ☐ CheckboxifanypartofthefeeisoffsetasprovidedbyExchangeActRule0-11(a)(2)andidentifythefilingforwhich

the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form orScheduleandthedateofitsfiling.

(1) AmountPreviouslyPaid:

(2) Form,ScheduleorRegistrationStatementNo.:

(3) FilingParty:

(4) DateFiled:

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STONERIDGE, INC. 39675 MacKenzie Drive, Suite 400

Novi, Michigan 48377

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

DearShareholder:

Weinviteyoutoattendour2020AnnualMeetingofShareholders(the“AnnualMeeting”)onTuesday,May19,2020,at11:00a.m.EasternDaylightSavingsTime(“EDT”).TheAnnualMeetingcanbeaccessedbytheInternetat www.virtualshareholdersmeeting.com/SRI2020.Because the Annual Meeting is virtualand being conducted electronically, shareholders cannot attend the meeting in person.

ThepurposeoftheAnnualMeetingistoconsiderandtakeactiononthefollowingitemsofbusiness:

(1) Toelecteightdirectors,eachforatermofoneyear;

(2) ToratifyoftheappointmentofErnst&YoungLLPasourindependentregisteredpublicaccountingfirmfor2020;

(3) Tovoteonanadvisoryresolutiontoapproveexecutivecompensation;

(4) Tovoteonaproposaltoapproveanamendmenttothe2016Long-TermIncentivePlantoincreasecommonsharesavailableforissuance;and

(5) TotransactsuchotherbusinessasmaybeproperlybroughtbeforetheAnnualMeetingandanypostponementoradjournmentthereof.

RecordDate.OnlyshareholdersofrecordatthecloseofbusinessonMarch20,2020,therecorddate,areentitledtonoticeofandtovoteattheAnnualMeeting.

WeurgeyoutovoteyoursharesontheInternet,bytoll-freetelephonecallor,ifyouhaverequestedapapercopyofourproxymaterials,bysigning,datingandreturningtheproxycardintheenvelopeprovided.

ByorderoftheBoardofDirectors,

THOMASM.DONO,Jr.,

ChiefLegalOfficerandSecretary

Dated:April2,2020

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUALMEETING OF SHAREHOLDERS TO BE HELD ON MAY 19, 2020:This Proxy Statement and the Company’s 2019 Annual Report to Shareholders are also available atwww.proxyvote.com.

YOUR VOTE IS IMPORTANT. PLEASE VOTE.

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2020 Proxy Statement

Table of Contents

Page

2020ProxyStatementSummary i

InformationAboutAnnualMeetingandVoting 1

BeneficialOwnership 4

• ProposalOne-ElectionofDirectors 5

• ProposalTwo-RatificationoftheappointmentofErnst&YoungLLPastheCompany’sindependentregisteredpublicaccountingfirmfor2020 9

AuditCommitteeReport 10

• ProposalThree-Approve,onanadvisorybasis,thecompensationofnamedexecutives 11

CorporateGovernance 12

CompensationDiscussionandAnalysis 17

CompensationCommitteeReport 28

ExecutiveCompensationTables 29

• ProposalFour-Amendmentto2016Long-TermIncentivePlantoincreasethenumberofauthorizedcommonsharesavailableforissuance 37

OtherInformation 41

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STONERIDGE, INC.

2020 Proxy Statement SummaryThissummaryhighlightsinformationcontainedelsewhereinthisProxyStatement.Thissummarydoesnotcontainalloftheinformationthatyoushouldconsider,andyoushouldreadtheentireProxyStatementcarefullybeforevoting.

Wearefurnishingtoourshareholderstheseproxymaterials,whichincludethisProxyStatementandour2019AnnualReporttoShareholders,byprovidingaccesstothemontheInternetatwww.proxyvote.com.OnoraboutApril2,2020webeganmailingshareholdersaNoticeRegardingAvailabilityofProxyMaterials(“NoticeofInternetAvailability”)containingimportantinformation,includinginstructionsonhowtoaccesstheproxymaterialsonlineandhowtovoteyoursharesovertheInternet.IfyoureceiveaNoticeofInternetAvailability,youwillnotreceiveapaperore-mailcopyoftheproxymaterialsunlessyourequestoneinthemannersetforthintheNoticeofInternetAvailability.

TheBoardofDirectorsissolicitingproxiesinconnectionwiththe2020AnnualMeetingofShareholdersandencouragesyoutoreadtheProxyStatementandvoteyoursharesbyInternet,bytelephoneorbymailingyourproxycardorvotinginstructionform.

Stoneridge, Inc. 2020 Annual Meeting Information

DateandTime: Tuesday,May19,2020,at11:00a.m.(EDT)

VirtualMeeting: Accessthemeetingatwww.virtualshareholdersmeeting.com/SRI2020

RecordDate: March20,2020

Voting: Shareholdersasoftherecorddateareentitledtovote.EachcommonshareisentitledtoonevoteforeachDirectornomineeandonevoteforeachoftheotherproposalspresentedforavote.

Matters to be Considered:

Management ProposalsBoard Vote

Recommendation

Page (for more

information)

1. ElecteightdirectorsnamedinthisProxyStatement FORALL 5

2. RatifytheappointmentofErnst&YoungLLP FOR 9

3. Provideadvisoryvoteonexecutivecompensation FOR 11

4. Amend2016Long-TermIncentivePlantoincreaseavailableshares FOR 37

Company PerformanceWedeliveredstrongperformancein2019asdespitelowersales,theCompanyexperiencedhigheroperatingincomeandnetincomecomparedtoprioryear.TheCompanybelievesthatfocusingourportfolioonsmartproducts,orproductswhichcontainembeddedelectronicsorlogic,willaddressindustrymegatrendsandhaveapositiveimpactonbothourtop-linegrowthandunderlyingmargins.

Netsalesdecreasedby$31.9million,or3.7%,comparedtotheprioryear,duetolowersalesinallsegments.OurControlDevicessegmentnetsalesdecreasedprimarilyasaresultofdecreasedsalesvolumeintheNorthAmericanautomotivemarket,partiallyoffsetbysalesvolumeincreasesinourChinaautomotiveandEuropeanautomotiveaswellastheone-timesaleofproductlinesandassetsrelatedtocertainnon-coreswitchesandconnectors.OurElectronicssegmentnetsalesdecreasedprimarilyduetoadecreaseinsalesvolumeinourEuropeancommercialvehiclemarketandunfavorableforeigncurrencytranslationoffsetbyanincreaseinsalesvolumeinourNorthAmericanandChinacommercialvehiclemarketsandincreasedsalesinouroff-highwayvehicleproducts.OurStoneridgeBrazilsegment(previouslyreferredtoas“PST”)netsalesdecreasedduetolowervolumesforourArgentinaaftermarketchannel,audioandalarmproducts,trackingdevicesandmonitoringservicerevenuesoffsetbyhighervolumesforourOEMandfactoryauthorizeddealerinstallerproducts.

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NetincomeattributabletoStoneridge,Inc.in2019increasedby$6.4millioncomparedtoprioryear,whichwasprimarilyduetothegainondisposalofControlDevices’productlinesandassetsrelatedtocertainnon-coreswitchesandconnectors(“Non-coreProducts”)of$33.6millionandtherecoveryofBrazilianindirecttaxesof$6.5millionwhichwereoffsetbydecreasedsalesandgrossmarginandanincreaseinrestructuringcostsof$9.6millionmostlyrelatedtoourpreviouslyannouncedclosureofourCantonfacility(“CantonRestructuring”).

(inthousands,exceptearningspershareandshareprice)

2019 2018

Netsales $ 834,289 $ 866,199

Operatingincome 71,281 67,004

Netincome 60,291 53,848

DilutedearningspershareattributabletoStoneridge,Inc. $ 2.13 $ 1.85

SharepriceatDecember31 $ 29.32 $ 24.65

Director NomineesBelowisasummaryofthedirectornominees,whoareelectedforone-yearterms.Additionalinformationabouteachdirectornomineeandhisorherqualificationsmaybefoundbeginningonpage5.

Committee Memberships

Name AgeDirector

Since Primary Occupation Independent AC CC NCGC CEC

JonathanB.DeGaynor 53 2015 PresidentandCEOofStoneridge,Inc.

JeffreyP.Draime 53 2005 Self-employedbusinessconsultant ✔ ✔ ✔

DouglasC.Jacobs 80 2004 ChiefFinancialOfficerandTreasurer,BrownstoneServicesLLC

✔ C ✔

IraC.Kaplan 66 2009 ExecutiveChairmanofBenesch,Friedlander,Coplan&AronoffLLP

✔ ✔ ✔ ✔

KimKorth 65 2006 PresidentandCEO6thAvenueGroup ✔ C ✔ ✔

WilliamM.Lasky 72 2004 Retired,FormerPresidentandCEOofAccurideCorporation

L ✔ ✔ C

GeorgeS.Mayes,Jr. 61 2012 Self-employedbusinessconsultant ✔ ✔ C

PaulJ.Schlather 67 2009 Self-employedbusinessconsultant ✔ ✔ ✔

AC AuditCommittee C CommitteeChairpersonCC CompensationCommittee L LeadIndependentDirectorNCGC NominatingandCorporateGovernance

Committee CEC ComplianceandEthicsCommittee

Ratification of the appointment of Ernst & Young LLPWeareaskingourshareholderstoratifytheappointmentofErnst&YoungLLPtoserveasourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2020.Formoreinformation,seepage9.

Executive Compensation HighlightsOurexecutivecompensationprogramisdesignedtoattract,retain,motivateandrewardtalentedexecutiveswhoadvanceourstrategic,operationalandfinancialobjectivesand,thereby,enhanceshareholdervalue.Theprimaryobjectivesofourcompensationprogramsforexecutiveofficersareto:

• Attractandretaintalentedexecutiveofficersbyprovidingacompensationpackagethatiscompetitivewiththatofferedbysimilarlysituatedcompanies;

• Createacompensationstructureunderwhichasubstantialportionoftotalcompensationisbasedonachievementofperformancegoals;and

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• Aligntotalcompensationwiththeobjectivesandstrategiesofourbusinessandshareholders.

Keyelementsofour2019compensationprogramwereasfollows:

• BaseSalary.Basesalaryhasbeentargetedatthe50thpercentileofourcomparatorgroup.

• AnnualIncentivePlan(“AIP”).The2019AIPwascomprisedofconsolidatedand,whereappropriate,divisionalfinancialperformancemetrics.Inaddition,thereisanindividualperformancecomponent.

• Long-TermIncentivePlan(“LTIP”).Long-termincentiveswereawardedunderourLong-TermIncentivePlanfor2019andtargetedatapproximatelythe50thpercentileofourcomparatorgroup.Theseawardswillvestinthreeyears,weightperformance-basedperformanceshares(“PerformanceShares”)moreheavilythantime-basedrestrictedshareunits(“RSUs”),andareallocatedasfollows:10%PerformanceSharesthatvestbasedonachievementofathreeyearreturnoninvestedcapital(“ROIC”)target;20%PerformanceSharesthatvestbasedonachievementofathreeyearcumulativeearningspershare(“EPS”)target;25%PerformanceSharesthatvestbasedonourTotalShareholderReturn(“TSR”)overathreeyearperiodcomparedtoagroupofpeercompanies;and45%RSUsthatvestbasedonthepassageoftime.

Formoreinformationrelatedtoourexecutivecompensationprogram,seepage17.

Amendment to 2016 LTIP Incentive PlanWearealsoaskingforourshareholderstoapprovalanamendmenttoour2016Long-TermIncentivePlan(the“2016LTIP”)toaddsharesavailableforissuanceunderthe2016LTIPtohelptheCompanyinachievingthegoalofpromotinglong-termgrowthandprofitability.TheamendmenttoaddshareswillenabletheCompanytocontinuetoattract,retainandrewardkeyemployees.

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STONERIDGE, INC.

PROXY STATEMENT

TheBoardofDirectors(the“Board”)ofStoneridge,Inc.(the“Company”)issendingyouthisProxyStatementtoaskforyourproxyasaCompanyshareholderonmatterstobevotedonatourAnnualMeetingofShareholders(“AnnualMeeting”)tobeheldonTuesday,May19,2020,at11:00a.m.(EDT),forthepurposessetforthhereinandintheaccompanyingNoticeofAnnualMeetingofShareholders.Thisyear’smeetingwillbeacompletely“virtual”AnnualMeeting.YoucanattendtheAnnualMeetingonline,voteyourshareselectronically,andsubmityourquestionsduringtheAnnualMeeting,byvisitingwww.virtualshareholdersmeeting.com/SRI2020.Youwillneedtohaveyour16-digitControlNumberincludedonyourNoticeInternetAvailabilityoryourproxycard(ifyoureceivedaprintedcopyoftheproxymaterials)tojointheAnnualMeeting.

WearemailingshareholdersaNoticeofInternetAvailabilitycontaininginstructionsonhowtoaccesstheproxymaterialsandhowtovoteonlineonoraboutApril2,2020.

Annual Report; Internet AvailabilityAspermittedbyU.S.SecuritiesandExchangeCommission(“SEC”)rules,wearefurnishingourproxymaterials,whichincludethisProxyStatement,ourNoticeofAnnualMeetingofShareholdersandour2019AnnualReporttoShareholders,toshareholdersbyprovidingaccesstotheproxymaterialsontheInternetatwww.proxyvote.com.TheCompanyanticipatesthattheNoticeInternetAvailabilityinconnectionwithourproxymaterialswillfirstbemailedonoraboutApril2,2020toallshareholdersentitledtovoteattheAnnualMeetingandwewillpostourproxymaterialsonthewebsitereferencedintheNoticeofInternetAvailability.AsmorefullydescribedintheNoticeofInternetAvailability,allshareholdersmaychoosetoaccessourproxymaterialsonthewebsitereferredtointheNoticeofInternetAvailabilityormayrequesttoreceive,withoutcharge,aprintedsetofourproxymaterials.

Solicitation of ProxiesTheBoardismakingthissolicitationofproxiesandwewillpaythecostofthesolicitation.Inaddition,ouremployeesmaysolicitproxiesbytelephone,facsimileore-mail.

ProxiesThecommonsharesrepresentedbyyourproxywillbevotedinaccordancewiththeinstructionsindicatedonyourproxycard.Intheabsenceofanysuchinstructions,theywillbevotedto(i)electthedirectornomineessetforthunder“ElectionofDirectors”;(ii)ratifytheappointmentofErnst&YoungLLPasourregisteredpublicaccountingfirmfor2020;(iii)approveonanadvisorbasisthecompensationofourNamedExecutiveOfficers,and(iv)approvetheamendmenttothe2016Long-TermIncentivePlan.

NobusinessotherthanthatsetforthintheaccompanyingNoticeofAnnualMeetingofShareholdersexpectedtocomebeforetheAnnualMeeting.Shouldanyothermatterrequiringavoteofshareholdersproperlyarise,thepersonsnamedintheenclosedformofproxywillvotesuchproxyinaccordancewiththeirjudgment.

Revocation of ProxiesYourparticipationattheAnnualMeeting,withoutfurtheraction,willnotrevokeyourproxy.However,ifyouarearegisteredshareholderyoumayrevokeyourproxyatanytimebeforeithasbeenexercisedby:

• signinganddeliveringalater-datedproxy;

• votingagainbyInternetortelephonepriorto1:00a.m.(EDT)onMay19,2020(onlythelatestvoteyousubmitwillbecounted);

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• givingnoticetotheCompanyinwritingatouraddressindicatedontheattachedNoticeofAnnualMeetingofShareholders(thenotificationmustbereceivedbythecloseofbusinessonMay15,2020);or

• byvotingattheAnnualMeeting.

Ifyouholdyourcommonsharesin“streetname”,inordertochangeorrevokeyourvotinginstructionsyoumustfollowthespecificvotingdirectionsprovidedtoyoubyyourbank,brokerorotherholderofrecord.

Virtual Shareholder MeetingThisyearweareholdingavirtualAnnualMeetinginsteadofaphysicalAnnualMeetingaswehavedoneinthepasttoaddresstheconcernsandrecentgovernmentordersrelatedtotheCOVID-19pandemic.InadditiontoconcernsrelatedtotheCOVID-19pandemic,holdingavirtualAnnualMeetingshouldprovideexpandedaccess,improvecommunicationandprovidepotentialcostsavingstoourshareholdersandourCompany.WebelievethatholdingavirtualAnnualMeetingwillenablemoreshareholderstoattendandparticipateinthemeetingbecauseourshareholderscanfullyparticipatefromanylocationwithInternetaccess.

TheAnnualMeetingwillbeconductedexclusivelyonlinevialive,audio-only,webcast,allowingalloftheCompany’sshareholderstheoptiontoparticipateinthelive,onlineshareholdermeetingfromanylocationconvenienttothem.Onlyshareholdersatthecloseofbusinessontherecorddatemayattend,voteandaskquestionsattheAnnualMeetingbyfollowingtheinstructionsprovided.ThevirtualAnnualMeetingcanbeaccessedbyvisiting:

www.virtualshareholdersmeeting.com/SRI2020

Youwillneedtohaveyour16-digitControlNumberincludedonourNoticeofInternetAvailabilityand/oryourproxycard(ifyoureceivedaprintedcopyoftheproxymaterials)tojoinandparticipateintheAnnualMeeting.

WeencourageyoutoaccesstheAnnualMeetingbeforethestarttimeof11:00a.m.(EDT),onMay19,2020.Pleaseallowampletimeforonlinecheck-in,whichwillbeginat10:30a.m.(EDT)onMay19,2020.

WewillhavetechniciansreadytoassistyouwithanytechnicaldifficultiesyoumayhaveaccessingthevirtualAnnualMeeting.Ifyouencounteranydifficultiesaccessingthemeetingorduringthemeetingtime,pleasecall:800-586-1548(U.S.)and303-562-9288(international).

ShareholderswhoparticipateinthevirtualAnnualMeetingbymeansofthehyperlinkabovewillbedeemedtobe“presentinperson,”assuchtermisusedinthisProxyStatement,includingforpurposeofdeterminingaquorumandcountingvotes.

Record Date and Voting EligibilityOnlyshareholdersofrecordatthecloseofbusinessontherecorddate,March20,2020,areentitledtoreceivenoticeoftheAnnualMeetingandtovotethecommonsharesheldontherecorddateatthemeeting.Ontherecorddate,ouroutstandingvotingsecuritiesconsistedof26,986,857commonshares,withoutparvalue,eachofwhichisentitledtoonevoteoneachmatterproperlybroughtbeforethemeeting.

VotingTheBoardisaskingforyourproxyinadvanceoftheAnnualMeeting.GivingyourproxymeansyouauthorizetheindividualsdesignatedasproxiestovoteyourcommonsharesattheAnnualMeetinginthemanneryoudirect.Youmaygiveyourproxyorotherwisevoteyourcommonsharesinoneofseveralways,dependingonhowyouholdyourshares.

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Shareholders of Record

IfyourcommonsharesareregistereddirectlyinyournamewiththeCompany’stransferagent,youareconsideredthe“shareholderofrecord”ofthosesharesandyoumay:

• By Telephone. Youmayvotebytelephonebycallingtoll-free1-800-690-6903onatouch-tonephoneuntil11:59p.m.EDTonMay18,2020.PleasehaveyourNoticeofInternetAvailabilityorproxycardinhandwhenyoucall.Thetelephonevotingsystemhaseasy-to-followinstructionsandprovidesconfirmationthatthesystemhasproperlyrecordedyourvote.

• By Internet. Youmayvoteyoursharesbyproxybyvisitingthewebsitewww.proxyvote.comuntil11:59p.m.EDTonMay18,2020.PleasehaveyourNoticeInternetofAvailabilityorproxycardinhandwhenyouaccessthewebsite.Thewebsitehaseasy-to-followinstructionsandprovidesconfirmationthatthesystemhasproperlyrecordedyourvote.

• By Mail.Ifyouhaverequestedorreceivepapercopiesofourproxymaterialsbymail,youmayvoteyoursharesbyproxybysigning,datingandreturningtheproxycardinthepostage-paidenvelopeprovided.Mailedproxycardswithrespecttosharesheldofrecordshouldbemailedtoallowsufficienttimefordeliveryandtabulation.IfyouvotebytelephoneorovertheInternet,youdonotneedtoreturnyourproxycardbymail.

• At the Annual Meeting.YoumayvoteyoursharesbyattendingtheAnnualMeetingbyaccessingwww.virtualshareholdersmeeting.com/SRI2020 andvotingusingthe16-digitcontrolnumberincludedonyourproxycardand/oronyourNoticeofInternetAvailability.However,youareencouragedtovoteinadvanceoftheAnnualMeetingbymail,telephoneorInternetevenifyouplantoparticipateintheAnnualMeetingviatheInternet.

Street Name Holders

• Youmustvoteyourcommonsharesthroughtheproceduresestablishedbyyourbank,broker,orotherholderofrecord.Yourbank,broker,orotherholderofrecordhasenclosedorotherwiseprovidedavotinginstructioncardforyoutouseindirectingthebank,broker,orotherholderofrecordhowtovoteyourcommonshares.

• Ifyouareashareholderholdingyoursharesin“streetname”asofthecloseofbusinessonMarch20,2020,youmaygainaccesstotheAnnualMeetingatwww.virtualshareholdersmeeting.com/SRI2020 byfollowingtheinstructionsinthevotinginstructioncardprovidedbyyourbank,brokerorotherholderofrecord.YoumaynotvoteyourshareselectronicallyattheAnnualMeetingunlessyoureceiveavalidproxyfromyourbank,brokerdealerorotherholderofrecord.

Ifyoudonotinstructyourbroker,bankorothernomineeonhowtovoteyourshares,itwillhavediscretionaryauthority,underNewYorkStockExchange(“NYSE”)rules,tovoteyoursharesontheratificationoftheappointmentofErnst&YoungLLPasourindependentregisteredpublicaccountingfirmfor2020(“Proposal2”).However,yourbroker,bankorothernomineewillnotbepermittedtovoteyourshares(a“brokernon-vote”)ontheelectionofdirectors(“Proposal1”),theadvisoryvotetoapproveourcompensationofourNamedExecutiveOfficers(“Proposal3”),ortheproposaltoamendthe2016LTIP(“Proposal4”).

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENTThefollowingtablesetsforthcertaininformationregardingthebeneficialownershipofourcommonsharesasofFebruary29,2020,by:(a)ourdirectorsandnomineesforelectionasdirectors;(b)eachotherpersonwhoisknownbyustoownbeneficiallymorethan5%ofouroutstandingcommonshares;(c)theexecutiveofficersnamedintheSummaryCompensationTable;and(d)allofourexecutiveofficersanddirectorsasagroup.

Name of Beneficial Owner

Number of Shares

BeneficiallyOwned(1)

Percent of Class

BlackRock,Inc.(2) 1,996,482 7.4%DimensionalFundAdvisorsLP(3) 1,848,511 6.8T.RowePriceAssociates,Inc.(4) 1,704,149 6.3MassachusettsFinancialServicesCompany(5) 1,634,138 6.0TheVanguardGroup(6) 1,608,314 5.9SilvercrestAssetManagementGroupLLC(7) 1,565,554 5.8JeffreyP.Draime(8) 440,213 1.6JonathanB.DeGaynor(9) 225,113 *WilliamM.Lasky(10) 127,579 *PaulJ.Schlather(11) 116,536 *IraC.Kaplan(12) 62,551 *DouglasC.Jacobs(10) 61,859 *KimKorth(10) 56,599 *RobertR.Krakowiak(13) 53,486 *GeorgeS.Mayes,Jr.(10) 45,619 *RobertR.Willig,Jr. 1,100 *ThomasM.Dono,Jr. — *LaurentP.Borne — *AllExecutiveOfficersandDirectorsasaGroup(17persons) 1,244,095 4.6%*Lessthan1%.(1) Unlessotherwiseindicated,thebeneficialownerhassolevotingandinvestmentpoweroversuchcommonshares.(2) AccordingtoaSchedule13G/AfiledwiththeSECbyBlackRock,Inc.TheaddressofBlackRock,Inc.is55East52nd

Street,NewYork,NewYork10055.(3) AccordingtoaSchedule13G/AfiledwiththeSECbyDimensionalFundAdvisorsLP,allsecuritiesreportedareownedby

commingledfunds,grouptrustsandseparateaccountstowhichitoritssubsidiariesserveasinvestmentadvisor,sub-advisorand/ormanager.DimensionalFundAdvisorsLPhasdisclaimedbeneficialownershipofallsuchsecurities.TheaddressofDimensionalFundAdvisorsLPisBuildingOne,6300BeeCaveRoad,Austin,Texas78746.

(4) AccordingtoaSchedule13GfiledwiththeSECbyT.RowePriceAssociates,Inc.TheaddressofT.RowePriceAssociatesInc.is100E.PrattStreet,Baltimore,MD21202.

(5) AccordingtoaSchedule13GfiledwiththeSECbyMassachusettsFinancialServicesCompany(“MFS”).TheaddressofMFSis111HuntingtonAve,Boston,MA02199.

(6) AccordingtoaSchedule13G/AfiledwiththeSECbyTheVanguardGroup.TheaddressofTheVanguardGroupis100VanguardBlvd.,Malvern,Pennsylvania19355.

(7) AccordingtoaSchedule13GfiledwiththeSECbySilvercrestAssetManagementGroupLLC.TheaddressofSilvercrestAssetManagementGroupLLCis1330AvenueoftheAmericas,38thFloor,NewYork,NY10019.

(8) Represents347,714commonsharesheldintrustforthebenefitofDraimefamilymembers,ofwhichMr.Draimeistrustee,88,964commonsharesownedbyMr.Draimedirectlyand3,535restrictedcommonsharessubjecttoforfeiture(whichvestedonMarch5,2020).

(9) Includes89,299time-basedshareunitsandperformance-basedperformanceshares,whichvestandarepayableincommonsharesonaone-for-onebasisonMarch6,2020.

(10) Includes3,535restrictedcommonsharessubjecttoforfeiture(whichvestedonMarch5,2020).(11) Represents47,500commonsharesheldinaninvestmentretirementaccountforthebenefitofMr.Schlather,65,501

commonsharesownedbyMr.Schlatherdirectlyand3,535restrictedcommonsharessubjecttoforfeiture(whichvestedonMarch5,2020).

(12) Represents59,016commonsharesheldinatrust,ofwhichMr.Kaplanistrustee,and3,535restrictedcommonsharessubjecttoforfeiture(whichvestedonMarch5,2020).

(13) Includes34,344time-basedshareunitsandperformance-basedperformanceshares,whichvestandarepayableincommonsharesonaone-for-onebasisonMarch6,2020.

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PROPOSAL ONE: ELECTION OF DIRECTORSInaccordancewiththeCompany’sAmendedandRestatedCodeofRegulations,thenumberofdirectorshasbeenfixedateight.AttheAnnualMeeting,shareholderswillelecteightdirectorstoholdofficeuntilournextAnnualMeetingofShareholdersanduntiltheirsuccessorsareelectedandqualified.TheBoardproposesthatthenomineesidentifiedbelowbeelectedtotheBoard.JonathanB.DeGaynorhasanemploymentagreementwiththeCompanywhichprovidesthatduringthetermoftheagreementheshallbeentitledtobenominatedforelectiontotheBoard.AtourAnnualMeeting,thecommonsharesrepresentedbyproxies,unlessotherwisespecified,willbevotedfortheelectionoftheeightnomineeshereinafternamed.

DirectorsareelectedbyapluralityofthevotescastattheAnnualMeeting.Brokernon-votesandabstainingvoteswillbecountedas“Present”forpurposesofdeterminingwhetheraquorumhasbeenachievedattheAnnualMeeting,butwillnotbecountedas“For”or“Withheld”fromanynominee.“Plurality”meansthatthedirectornomineeswhoreceivethegreatestnumberofvotescastareelected,uptothemaximumnumberofdirectorstobeelectedatthemeeting.Themaximumnumbertobeelectediseight.Sharesnotvotedwillhavenoimpactontheelectionofdirectors.Unlesspropervotinginstructionsareto“Withhold”authorityforanyorallnominees,theproxygivenwillbevoted“For”eachofthenomineesfordirector.

Majority Voting Principle.UnderourCorporateGovernanceGuidelines,anynomineefordirectorinanuncontestedelectionwhoreceivesagreaternumberofvotes“Withheld”fromhisorherelectionthanvotes“For”hisorherelectionmustpromptlyofferhisorherresignation.TheBoard’sNominatingandCorporateGovernanceCommitteewillthenconsidertheresignationandrecommendtotheBoardwhethertoacceptorrejectit.TheBoardwillactontheCommittee’srecommendationwithin90daysaftertheAnnualMeeting,andtheBoard’sdecisionwillbepubliclydisclosedonForm8-K.AnydirectorwhooffershisorherresignationmaynotparticipateintheBoard’sdiscussionorvote.

ThedirectornomineesnominatedbytheBoardareidentifiedbelow.Ifforanyreasonanyofthenomineesisnotacandidatewhentheelectionoccurs(whichisnotexpected),theBoardexpectsthatproxieswillbevotedfortheelectionofasubstitutenomineedesignatedbytheBoard.Thefollowinginformationisfurnishedwithrespecttoeachpersonnominatedforelectionasadirector.

The Board of Directors recommends that you vote FOR the following nominees.

Nominees to Serve for a One-Year Term Expiring in 2020

JonathanB.DeGaynor

Mr.DeGaynor,53,isthePresidentandChiefExecutiveOfficer(“CEO”)oftheCompanyandhasservedinthisrolesinceMarch2015.Mr.DeGaynorservedastheVicePresident-StrategicPlanningandInnovationofGuardianIndustriesCorp.(“Guardian”),amanufacturerofindustrialglassandotherbuildingproductsforcommercial,residentialandautomotiveapplications,fromOctober2014untilMarch2015.Priortothat,Mr.DeGaynorservedasVicePresident-BusinessDevelopment,ManagingDirectorAsiaforSRGGlobal,Inc.,aGuardiancompanyandmanufacturerofchromeplatedplasticpartsfortheautomotive,commercialtruckandconsumergoodsindustries,fromAugust2008.

TheCompanybelievesthatMr.DeGaynorshouldserveasadirectorbecauseheprovidesservicesastheCompany’sPresidentandChiefExecutiveOfficerandbecausehisextensivecareerintheautomotiveindustryhasspannedallphasesofengineering,operationsleadership,corporatestrategyandbusinessleadership.Hebringsexpertiserelatedtodevelopmentandproductionofproductsandtechnologies.HeprovidesvaluableinsighttotheBoardandstrengthenstheBoard’scollectivequalifications,skillsandexperience.

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JeffreyP.Draime

Mr.Draime,53,hasservedasadirectorsince2005.Since2005Mr.Draimehasbeenaself-employedbusinessconsultant.Mr.DraimeisapartnerandthePresidentofAeroMaxAviationHoldingsLLC,acharteraircraftcorporation.

Mr.DraimeservedinvariousroleswiththeCompanyfrom1988through2001,includingoperations,sales,qualitycontrol,productcosting,andmarketing.From1999to2011hewastheownerofQSLColumbus/QSLDayton,arestaurantfranchise.From2017topresentMr.DraimehasservedastheChairmanoftheBoardofDirectorsofAeromics,Inc.,aclinicalstagebiotechcompany.From2012through2015,Mr.DraimehasservedasadirectorofServantageDixieSales,Inc.,anindependent,fullservice,valueaddeddistributorservingconsumerproductsmarkets.TheCompanybelievesMr.DraimeshouldserveasadirectorbecauseheprovidesanhistoricalaswellasaninternalperspectiveofourbusinesstotheBoardandstrengthenstheBoard’scollectivequalifications,skillsandexperience.

DouglasC.Jacobs

Mr.Jacobs,80hasservedasadirectorsince2004.Since2015hehasservedastheChiefFinancialOfficerandTreasurerofBrownstoneServicesLLCandseveralotherprivatelyheldcompaniesownedbythebeneficiaryofamaritaltrust.From2005to2014,Mr.JacobswastheExecutiveVicePresident-FinanceandChiefFinancialOfficerofBrooklynNYHoldingsLLC,aprivatelyheldinvestmentadvisorycompanyestablishedtomanagetheassetsofamaritaltrust.Priortoservinginthisposition,from1999until2005Mr.JacobsheldvariousfinancialpositionswiththeClevelandBrowns.Mr.JacobsisaformerpartnerofArthurAndersenLLP.

Mr.JacobsservedasadirectorandmemberoftheAuditCommitteeoftheBoardofCalAtlanticGroupInc.,anationalresidentialhomebuilder,whichwasformedasaresultofthemergerofStandardPacificCorporationandRylandHomesinOctober2015untilFebruary2018.Priortothemerger,Mr.JacobshasservedasadirectorofStandardPacificCorporation,anationalresidentialhomebuilderinsouthernCalifornia,since1998andservedasChairmanoftheAuditCommitteeandamemberoftheCompensation,ExecutiveandNominatingandCorporateGovernanceCommittees.

Mr.Jacobsqualifiesasanauditcommitteefinancialexpertduetohisextensivebackgroundinaccountingandfinancebuiltthroughhiscareerinpublicaccounting.Inadditiontohisprofessionalandaccountingexperiencedescribedabove,theCompanybelievesthatMr.JacobsshouldserveasadirectorbecauseheprovidesvaluablebusinessexperienceandjudgmenttotheBoard,whichstrengthenstheBoard’scollectivequalifications,skillsandexperience.

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IraC.Kaplan

Mr.Kaplan,66,hasservedasadirectorsince2009.SinceJanuary2015hehasservedastheExecutiveChairmanofBenesch,Friedlander,Coplan&AronoffLLP,anationallawfirm,andservedastheManagingPartnerfrom2008until2014.Heisamemberofthefirm’sExecutiveCommitteeandhasbeenapartnerwiththefirmsince1987.Mr.Kaplanfocuseshispracticeonmergersandacquisitionsaswellaspublicandprivatedebtandequityfinancings.

Mr.Kaplancounselsclientsingovernanceandbusinessmattersinhisroleatthelawfirm.Inadditiontohislegalandmanagementexperiencedescribedabove,theCompanybelievesthatMr.Kaplanshouldserveasadirectorbecausehebringsthoughtfulanalysis,soundjudgmentandinsighttobestpracticestotheBoard,inadditiontohisprofessionalexperiences,whichstrengthenstheBoard’scollectivequalifications,skillsandexperience.

KimKorth

Ms.Korth,65,hasservedasadirectorsince2006.SinceMay2019,Ms.KorthhasservedastheManagingDirectorandboardmemberofEngaugeWorkforceSolutions,andsinceJuly2017,Ms.KorthhasservedasthePresidentandChiefExecutiveOfficerof6thAvenueConsultingGroup.FromJanuary2018toDecember2019,Ms.KorthwastheChiefExecutiveOfficerandboardmemberofbb7.Priortothat,fromDecember2012untilApril2017,Ms.KorthwasthePresidentandChiefExecutiveOfficerofDicktenMaschPlastics,LLC,athermoplasticsandthermosetmanufacturer,andthePresident,ChiefExecutiveOfficeranddirectorofTECHNIPLASTM,aprivatelyheldgroupofplastics-focusedmanufacturingbusinesses.Priortothat,sheservedasPresident,ChiefExecutiveOfficerandasadirectorofSupremeCorporation,amanufactureroftruckandvanbodies,from2011to2012.Ms.KorthisthefounderandownerofIRN,Inc.,aninternationalautomotiveconsultingfirm.Shefoundedtheconsultingfirmin1983andisarecognizedexpertonautomotivesupplierstrategyandissues.

Ms.KorthisamemberoftheboardofUniqueFabricating,Inc.,anichesupplierofacousticpartsfortheautomotiveindustry.

Ms.Korthhasseveraldecadesofexperienceincorporategovernanceissues,organizationaldesign,anddevelopmentofstrategiesforgrowthandimprovedfinancialperformanceforautomotivesuppliers.Inadditiontotheknowledgeandexperiencedescribedabove,theCompanybelievesthatMs.KorthshouldserveasadirectorbecausesheprovidesinsighttoindustrytrendsandexpectationstotheBoard,whichstrengthenstheBoard’scollectivequalifications,skillsandexperience.

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WilliamM.Lasky

Mr.Lasky,72,hasservedasadirectorsince2004.Mr.LaskyservedasPresidentandChiefExecutiveOfficerofAccurideCorporation(“Accuride”),amanufacturerandsupplierofcommercialvehiclecomponents,from2008untilhisretirementin2011.HeservedastheChairmanoftheBoardofAccuridefrom2009to2012.OnOctober8,2009AccuridefiledavoluntarypetitionunderChapter11oftheUnitedStatesBankruptcyCode.OnFebruary26,2010,aftersuccessfullycompletingitsplanofreorganization,AccurideemergedfromChapter11bankruptcy.Mr.LaskyservedasPresidentandChiefExecutiveOfficerofJLGIndustries,Inc.,adiversifiedconstructionandindustrialequipmentmanufacturer,from1999through2006andservedasChairmanoftheBoardfrom2001through2006.

From2011throughMay2016,Mr.LaskyalsoservedasadirectorofAffiniaGroup,Inc.,adesigner,manufactureranddistributorofindustrialgradereplacementpartsandservicesforautomotiveandheavy-dutyvehicles.

Inadditiontohisprofessionalexperiencedescribedabove,theCompanybelievesthatMr.Laskyshouldserveasadirectorbecauseheprovidesin-depthindustryknowledge,businessacumenandleadershiptotheBoard,whichstrengthenstheBoard’scollectivequalifications,skillsandexperience.

GeorgeS.Mayes,Jr.

Mr.Mayes,61,hasservedasadirectorsince2012.Mr.Mayescurrentlyprovidesindependentbusinessconsultingservices.Previously,Mr.MayesservedasExecutiveVicePresidentandChiefOperatingOfficerofDiebold,Inc.,aproviderofintegratedself-servicedeliveryandsecuritysystemsandservices,from2013to2015.Priortothat,heservedasExecutiveVicePresidentofOperationsfrom2008,asSeniorVicePresident,SupplyChainManagementfrom2006to2008,andasVicePresident,GlobalManufacturinguponjoiningDiebold,Inc.in2005.

Mr.MayeshasextensiveexperienceinleanmanufacturingandSixSigmaprocessesandhasmanagedmanufacturingfacilitiesinCanada,Mexico,France,Hungary,Brazil,China,Poland,ItalyandtheUnitedStates.

TheCompanybelievesthatMr.Mayesshouldserveasadirectorbecauseheprovidesin-depthknowledgeofmanufacturingtheoriesandoperations,businessacumenandleadershiptotheBoard,whichstrengthenstheBoard’scollectivequalifications,skillsandexperience.

PaulJ.Schlather

Mr.Schlather,67,hasservedasadirectorsince2009.Mr.Schlathercurrentlyprovidesindependentbusinessconsultingservices.Mr.SchlatherwasapartneratPricewaterhouseCoopersLLP,servingasco-headtothePrivateClientServicegroupfromAugust2002untilhisretirementin2008.Mr.Schlatheralsoservesontheboardsoffourcloselyheldbusinesses.

Mr.Schlatherqualifiesasanauditcommitteefinancialexpertduetohisextensivebackgroundinaccountingandfinancebuiltthroughhiscareerinpublicaccounting.Inadditiontohisprofessionalandaccountingexperiencedescribedabove,theCompanybelievesthatMr.SchlathershouldserveasadirectorbecauseheprovidesfinancialanalysisandbusinessacumentotheBoard,whichstrengthenstheBoard’scollectivequalifications,skillsandexperience.

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PROPOSAL TWO: RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLPTheAuditCommitteeoftheBoardcurrentlyanticipatesappointingErnst&YoungLLP(“Ernst&Young”)asourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2020.For2019,Ernst&Youngwasengagedbyustoauditourannualfinancialstatements,assessourinternalcontroloverfinancialreportingandtoperformaudit-relatedandtaxservices.WeexpectthatrepresentativesofErnst&YoungwillbepresentattheAnnualMeeting,willhaveanopportunitytomakeastatementiftheysodesire,andareexpectedtobeavailabletorespondtoappropriatequestionsfromshareholders.

TheAuditCommitteeisdirectlyresponsiblefortheappointment,compensation,retentionandoversightoftheindependentexternalauditfirmretainedtoaudittheCompany’sfinancialstatements.Asamatterofgoodcorporategovernance,theAuditCommitteerequeststhatshareholdersratifyitsanticipatedselectionofErnst&Youngtoserveasourindependentregisteredpublicaccountingfirmfor2020.

Althoughratificationbyshareholdersisnotlegallyrequired,theBoardbelievesthatthesubmissionisanopportunityfortheshareholderstoprovidefeedbackonanimportantissueofcorporategovernance.IfourshareholdersdonotapprovetheappointmentofErnst&Young,theappointmentofourindependentregisteredpublicaccountingfirmwillbere-evaluatedbytheAuditCommittee,butwillnotrequiretheAuditCommitteetoappointadifferentaccountingfirm.Iftheselectionisnotratified,theAuditCommitteewillconsiderwhetheritisappropriatetoselectanotherindependentregisteredpublicaccountingfirm.Eveniftheselectionisratified,theAuditCommitteeinitsdiscretionmayselectadifferentindependentregisteredpublicaccountingfirmatanytimeduring2020ifitdeterminesthatsuchachangewouldbeinthebestinterestsoftheCompanyandourshareholders.

ApprovalofthisproposalrequirestheaffirmativevoteofamajorityofthecommonsharespresentinpersonorbyproxyandentitledtobevotedontheproposalatourAnnualMeeting.Abstentionswillhavethesameeffectasvotesagainsttheproposal.Brokernon-voteswillnotbeconsideredcommonsharespresentandentitledtovoteontheproposalandwillnothaveapositiveornegativeeffectontheoutcomeofthisproposal,however,thereshouldbenobrokernon-votesonthisproposalbecausebrokersshouldhavethediscretiontovoteuninstructedcommonsharesonthisproposal.

The Board of Directors recommends that you vote FOR Proposal Two.

Service Fees Paid to the Independent Registered Public Accounting FirmForthefiscalyearsendedDecember31,2019and2018weretainedErnst&Youngtoprovideservicesinthefollowingcategoriesandamounts.TheAuditCommitteehasconsideredthescopeandfeearrangementsforallservicesprovidedbyErnst&Young,takingintoaccountwhethertheprovisionofnon-audit-relatedservicesiscompatiblewithmaintainingErnst&Young’sindependence.

2019 2018

AuditFees $2,380,600 $2,291,400

AuditRelatedFees 5,400 3,000

TaxFees 331,100 357,000

TotalFees $2,717,100 $2,651,800

Audit Fees. Auditfeesincludeservicesassociatedwiththeannualauditofourconsolidatedfinancialstatements,theauditofourinternalcontroloverfinancialreporting,thequarterlyreviewsofthefinancialstatementsincludedinourSECForm10-Qfilings,internationalstatutoryauditsandotherservicesthatarenormallyprovidedbytheindependentregisteredaccountantsinconnectionwithregulatoryfilings.

Audit-related fees.AuditrelatedfeesincludeservicesassociatedwithassuranceandrelatedservicesthatarereasonablyrelatedtotheperformanceoftheauditoftheCompany’sfinancialstatements.

Tax Fees. Taxfeesrelatetotaxplanning,domesticandinternationaltaxcomplianceandtaxadvice.

Pre-Approval Policies and ProceduresTheAuditCommitteeCharterrequirespre-approvalofallauditingservicesandpermittednon-auditservices(includingthefeesandtermsthereof)tobeperformedfortheCompanybyitsindependentregisteredpublicaccountingfirm.Pre-approvalisgenerallyprovidedforuptooneyear,isdetailedasto

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theparticularserviceorcategoryofservicesandisgenerallysubjecttoaspecificbudget.TheAuditCommitteealsopre-approvesparticularservicesonacase-by-casebasis.Inaccordancewiththispolicy,theAuditCommitteehasdelegatedpre-approvalauthoritytotheChairmanoftheAuditCommittee.TheChairmanmaypre-approveservicesandinformtheAuditCommitteeatthenextscheduledmeeting.

AllservicesprovidedbyErnst&Youngduringfiscalyear2019,asnotedintheprevioustable,wereauthorizedandapprovedbytheAuditCommitteeincompliancewiththeAuditCommitteeCharterasdescribedabove.

Audit Committee ReportInaccordancewithitswrittencharter,theAuditCommitteeassiststheBoardinoverseeing(a)theintegrityofthefinancialstatementsoftheCompany,(b)theeffectivenessofinternalcontrolsoverfinancialreportingunderSection404oftheSarbanes-OxleyActof2002,(c)theCompany’scompliancewithlegalandregulatoryrequirements,(d)theCompany’sindependentregisteredpublicaccountingfirm’squalificationsandindependence,and(e)theperformanceoftheCompany’sinternalauditfunctionandindependentregisteredpublicaccountingfirm.Managementisresponsibleforthefinancialstatementsandthefinancialreportingprocess,includingassessingtheeffectivenessoftheCompany’sinternalcontroloverfinancialreporting.TheindependentregisteredpublicaccountingfirmisresponsibleforconductingauditsandreviewsofourfinancialstatementsinaccordancewithstandardsestablishedbythePublicCompanyAccountingOversightBoard,expressinganopinionontheconformityoftheCompany’sfinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andauditingandreportingontheCompany’seffectivenessofinternalcontrolsoverfinancialreporting.TheAuditCommitteeiscomprisedoffivedirectors,eachofwhomis“independent”forauditcommitteepurposesunderthelistingstandardsoftheNYSE.

Indischargingitsoversightresponsibilityastotheauditprocess,theAuditCommitteereviewedanddiscussedourauditedfinancialstatementsfortheyearendedDecember31,2019,withmanagement,includingadiscussionofthequality,notjusttheacceptability,oftheaccountingprinciples;thereasonablenessofsignificantjudgments;andtheclarityofdisclosuresinthefinancialstatements.TheAuditCommitteealsodiscussedwithourindependentregisteredpublicaccountingfirm,Ernst&Young,themattersrequiredtobediscussedunderthePublicCompanyAccountingOversightBoardandtheCommission.TheAuditCommitteehasreceivedthewrittendisclosuresandletterfromErnst&YoungrequiredbytheapplicablerequirementsofthePublicCompanyAccountingOversightBoardregardingErnst&Young’scommunicationwiththeAuditCommitteeconcerningindependence.TheAuditCommitteediscussedErnst&Young’sindependencewithErnst&Young.TheAuditCommitteealsoconsideredwhethertheprovisionofnon-auditservicesbyErnst&YoungiscompatiblewithmaintainingErnst&Young’sindependence.

TheAuditCommitteediscussedwithourVicePresidentofTax&InternalAuditandInternalAuditDirectorandErnst&Youngtheoverallscopeandplansfortheirrespectiveaudits.TheAuditCommitteealsometwiththeInternalAuditDirectorandErnst&Young,withandwithoutmanagementpresent,todiscusstheresultsoftheirexaminations,theirevaluationsofourinternalcontrols,andtheoverallqualityoftheCompany’sfinancialreporting.

Basedontheabove-referencedreviewanddiscussionswithmanagement,theInternalAuditDirectorandErnst&Young,theAuditCommitteerecommendedtotheBoard,andtheBoardapproved,thattheauditedconsolidatedfinancialstatementsforfiscal2019beincludedintheCompany’sAnnualReportonForm10-KfiledwiththeSEC.

The Audit Committee

DouglasC.Jacobs,ChairmanIraC.KaplanWilliamM.LaskyGeorgeS.Mayes,Jr.PaulJ.Schlather

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PROPOSAL THREE: SAY-ON-PAYAsrequiredbySection14AoftheSecuritiesExchangeActof1934(the“ExchangeAct”)weprovideourshareholderswiththeopportunitytocastanannualadvisorynon-bindingvotetoapprovethecompensationofourNamedExecutiveOfficersasdisclosedpursuanttotheSEC’scompensationdisclosurerules(whichdisclosureincludestheCompensationDiscussionandAnalysis,thecompensationtables,andthenarrativedisclosuresthataccompanythecompensationtables(a“Say-On-Pay”proposal)).WebelievethatitisappropriatetoseektheviewsofshareholdersonthedesignandeffectivenessoftheCompany’sexecutivecompensationprogram.

AttheCompany’s2019AnnualMeetingofShareholders,98.2%ofthevotescastontheSay-On-Payproposalvotedinfavoroftheproposal.TheCompensationCommitteebelievesthisaffirmedshareholders’supportoftheCompany’sapproachtoexecutivecompensation.

Ourgoalfortheexecutivecompensationprogramistoattract,motivate,andretainatalented,entrepreneurialandcreativeteamofexecutivestoprovideoperationalandstrategicleadershipfortheCompany’ssuccessincompetitivemarkets.Weseektoaccomplishthisgoalinawaythatrewardsperformanceandisalignedwithourshareholders’long-terminterests.Webelievethatourexecutivecompensationprogram,whichemphasizesperformance-basedcompensationandlong-termequityawards,satisfiesthisgoalandisstronglyalignedwiththelong-terminterestsofourshareholders.

Basecompensationisalignedtobecompetitiveintheindustryinwhichweoperate.Performance-basedcompensation(cashandequity)represents45-53%ofeachexecutiveofficer’stargetcompensationopportunity,withlong-termincentivesrepresentingthelargestportionofcompensation.Targetsforincentivecompensationarebasedonfinancialperformancetargetsandincreasingshareholdervalue.TheCompensationCommitteeretainstheservicesofanindependentcompensationconsultanttoadvisetheCommitteeoncompetitivecompensationandcompensationpractices.

The Board recommends that shareholders vote FOR the following resolution:“RESOLVEDthatthecompensationpaidtotheCompany’sNamedExecutiveOfficers,asdisclosedpursuanttoItem402ofRegulationS-K,includingtheCompensationDiscussionandAnalysis,compensationtablesandnarrativediscussion,isherebyAPPROVED.”

Becausethevoteisadvisory,itwillnotbebindingupontheBoardortheCompensationCommittee.TheBoardandtheCompensationCommitteevaluetheopinionsofourshareholdersandwilltakeintoaccounttheoutcomeofthevotewhenconsideringfuturedecisionsregardingexecutivecompensation.

TheaffirmativevoteofamajorityofthecommonsharespresentorrepresentedbyproxyandvotingattheAnnualMeetingwillconstituteapprovalofthisnon-bindingresolution.Ifyouowncommonsharesthroughabank,brokerorotherholderofrecord,youmustinstructyourbank,brokerorotherholderofrecordhowtovoteinorderforthemtovoteyourcommonsharessothatyourvotecanbecountedonthisproposal.Abstentionswillhavethesameeffectasvotesagainsttheproposal.Brokernon-voteswillnotbeconsideredcommonsharespresentandentitledtovoteonthisproposalandwillnothaveapositiveornegativeeffectontheoutcomeofthisproposal.

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CORPORATE GOVERNANCE

Corporate Governance Documents and Committee ChartersTheCompany’sCorporateGovernanceGuidelines,CodeofConduct,CodeofEthicsforSeniorFinancialOfficersandthechartersoftheBoardofDirectors’Audit,Compensation,NominatingandCorporateGovernanceandComplianceandEthicscommitteesarepostedonourwebsiteatwww.stoneridge.com.

Writtencopiesofthesedocumentsareavailablewithoutchargetoanyshareholderuponrequest.RequestsshouldbedirectedtoInvestorRelationsattheaddresslistedontheNoticeofAnnualMeetingofShareholders.

Corporate Ethics HotlineWeestablishedacorporateethicshotlineaspartofourWhistleblowerPolicyandProcedurestoallowpersonstolodgecomplaintsaboutaccounting,auditingandinternalcontrolmatters,andtoallowanemployeetolodgeaconcern,confidentiallyandanonymously,aboutanyaccountingandauditingmatter.InformationaboutlodgingsuchcomplaintsormakingsuchconcernsknowniscontainedinourWhistleblowerPolicyandProcedures,whichispostedonourwebsiteatwww.stoneridge.com.

Director IndependenceTheNYSErulesrequirelistedcompaniestohaveaBoardofDirectorscomprisedofatleastamajorityofindependentdirectors.UndertheNYSErules,adirectorqualifiesas“independent”upontheaffirmativedeterminationbytheBoardofDirectorsthatthedirectorhasnomaterialrelationshipwiththeCompany(eitherdirectlyorasapartner,shareholderorofficerofanorganizationthathasarelationshipwiththeCompany).TheBoardhasnotadoptedcategoricalstandardsofindependence.TheBoardhasdeterminedthatthefollowingdirectorsandnomineesforelectionasadirectorareindependent:

JeffreyP.Draime KimKorth GeorgeS.Mayes,Jr.

DouglasC.Jacobs WilliamM.Lasky PaulJ.Schlather

IraC.Kaplan

Annual Board and Committee Self EvaluationsOurCorporateGovernanceguidelinerequiresthattheBoardandeachcommitteeconductanannualself-evaluation.Theself-evaluationsareintendedtofacilitateacandidassessmentanddiscussionbytheBoardandeachcommitteeofitseffectivenessasagroupinfulfillingitsresponsibilities.EachyeartheBoardandeachcommitteeconductsaself-evaluation/assessmentusingquestionnairestofacilitatetheevaluation.TheBoardandeachCommitteethenreviewsasummaryofthequestionnairesinconnectionwithdiscussionstodeterminewhichareastheBoardandCommitteewouldliketofocusonduringthecomingyeartoenhanceitseffectiveness.

The Board of Directors’ Role in Risk OversightItismanagement’sresponsibilitytomanageriskandbringtotheBoard’sattentionthemostmaterialriskstotheCompany.TheBoardhasoversightresponsibilityoftheprocessesestablishedtoreportandmonitorsystemsformaterialrisksapplicabletous.TheAuditCommitteeregularlyreviewsenterprise-wideriskmanagement,whichincludestreasuryrisks(foreignexchangerates,andcreditanddebtexposures),financialandaccountingrisks,legalandcompliancerisks,andotherinherentriskstotheCompany.TheCompensationCommitteeconsidersrisksrelatedtotheattractionandretentionoftalentandrelatedtothedesignofcompensationprogramsandarrangements.ThefullBoardconsidersstrategicrisksandopportunitiesandregularlyreceivesreportsfrommanagementonriskandfromthecommitteesregardingriskoversightintheirareasofresponsibility.

The Board of Directors’ Role in Ethics and ComplianceTheCompanyiscommittedtoacultureofintegrityandtrust,toconductingallofitsbusinessdealingsincompliancewithapplicablefederal,stateandforeignlaws,rulesandregulationsandtooperatingwiththehigheststandardsofbusinessethics.In2017theBoardestablishedtheComplianceandEthics

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CommitteetoassisttheBoardinoverseeing(i)theCompany’sactivitiesintheareasofcorporateresponsibility,complianceandethics,includingoversightoftheCompany’sCodeofConductandStoneridgeIntegrityProgramCharter,and(ii)theCompany’scompliancewithlegalandregulatoryrequirements.MembersoftheComplianceandEthicsCommitteeareIraC.Kaplan,KimKorth,GeorgeS.Mayes,Jr.(chair)andPaulSchlather.

Anti-Hedging PolicyOurInsiderTradingPolicyprohibitsCompanydirectors,officersandkeyemployeescoveredbythepre-clearanceproceduresoftheInsiderTradingPolicyfromengaginginhedgingtransactionsdesignedtooffsetdecreasesinthemarketvalueoftheCompany’ssecurities,includingtransactionsinprepaidvariableforwardcontracts,equityswaps,collars,exchangefunds,putoptions,calloptionsorotherderivativesecurities,onanexchangeorinanyotherorganizedmarket.

Anti-Pledging PolicyOurInsiderTradingPolicyprohibitsdirectors,officersandkeyemployeescoveredbythepre-clearanceprovisionsoftheInsiderTradingPolicyfromholdingCompanysecuritiesinamarginaccountorpledgingCompanysecuritiesascollateralforaloan.

The Board of DirectorsIn2019theBoardheldninemeetingsandtookactionbyunanimouswrittenconsentontwooccasions.EachBoardmemberattendedatleast75%ofthemeetingsoftheBoardandofthecommitteesonwhichheorsheserves.OurpolicyisthatdirectorsaretoattendtheAnnualMeetingofShareholders.Allofourdirectorsattendedthe2019AnnualMeetingofShareholders.Mr.Laskyhasbeenappointedastheleadindependentdirectorbytheindependentdirectorstopresideattheexecutivesessionsoftheindependentdirectors.TheBoard’sindependentdirectorsmeetregularlyinexecutivesession.Alldirectors,exceptMr.DeGaynor,theCompany’sPresidentandCEO,areindependent.

Leadership of the BoardTheBoarddoesnothaveaformalpolicyregardingtheseparationoftherolesofCEOandChairmanoftheBoardastheBoardbelievesitisinthebestinterestoftheCompanyandourshareholderstomakethatdeterminationbasedonthepositionanddirectionoftheCompanyandthemembershipoftheBoard.Atthistime,theBoardhasdeterminedthathavinganindependentdirectorserveasChairmanisinthebestinterestoftheCompanyandourshareholders.ThisstructureensuresagreaterrolefortheindependentdirectorsintheoversightoftheCompanyandactiveparticipationoftheindependentdirectorsinsettingagendasandestablishingBoardprioritiesandprocedures.Further,thisstructurepermitsourPresidentandCEOtodevotemoretimefocusingonthestrategicdirectionandmanagementofourday-to-dayoperations.

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Committees of the BoardTheBoardhasfourstandingcommitteestofacilitateandassisttheBoardintheexecutionofitsresponsibilities.ThesecommitteesaretheAuditCommittee,theCompensationCommittee,theNominatingandCorporateGovernanceCommitteeandtheComplianceandEthicsCommittee.EachmemberoftheAudit,Compensation,NominatingandCorporateGovernanceandComplianceandEthicsCommitteesisindependentasdefinedunderthelistingstandardsoftheNYSE.ThetablebelowshowsthecompositionoftheBoard’scommittees:

Audit Committee

Compensation Committee

Nominating and Corporate

Governance CommitteeCompliance and

Ethics Committee

DouglasC.Jacobs* JeffreyP.Draime JeffreyP.Draime IraC.Kaplan

IraC.Kaplan DouglasC.Jacobs IraC.Kaplan KimKorth

WilliamM.Lasky KimKorth* KimKorth GeorgeS.Mayes,Jr.*

GeorgeS.Mayes,Jr. WilliamM.Lasky WilliamM.Lasky* PaulJ.Schlather

PaulJ.Schlather

* CommitteeChairperson

Audit Committee

Thiscommitteeheldeightmeetingsin2019.InformationregardingthefunctionsperformedbytheAuditCommitteeissetforthinthe“AuditCommitteeReport,”includedinthisProxyStatement.TheBoardhasdeterminedthateachAuditCommitteememberisfinanciallyliterateunderthelistingstandardsoftheNYSE.TheBoardalsodeterminedthatMr.JacobsandMr.Schlathereachqualifyasan“auditcommitteefinancialexpert”asdefinedbytheSECrulesadoptedpursuanttotheSarbanes-OxleyActof2002.Inaddition,undertheSarbanes-OxleyActof2002andtheNYSErulesmandatedbytheSEC,membersoftheauditcommitteemusthavenoaffiliationwiththeissuer,otherthantheirBoardseat,andreceivenocompensationinanycapacityotherthanasadirectororcommitteemember.EachmemberoftheAuditCommitteemeetsthisadditionalindependencestandardapplicabletoauditcommitteemembersofNYSElistedcompanies.

Compensation Committee

Thiscommitteeheldfourmeetingsin2019.EachmemberofourCompensationCommitteemeetstheindependencerequirementsoftheNYSE,includingtheenhancedindependencerequirementsapplicabletoCompensationCommitteemembersunderNYSErulesandisanon-employeedirectorunderRule16b-3oftheExchangeAct.TheCompensationCommitteeisresponsibleforestablishingandreviewingourcompensationphilosophyandprogramswithrespecttoourexecutiveofficers;approvingexecutiveofficercompensationandbenefits;recommendingtotheBoardtheapproval,amendmentandterminationofincentivecompensationandequity-basedplans;andcertainothercompensationmatters,includingdirectorcompensation.OurCEOmakesrecommendationsregardingcompensationofotherofficerstotheCompensationCommittee.TheCompensationCommitteecanexerciseitsdiscretioninmodifyinganyamountpresentedbyourCEO.TheCompensationCommitteeregularlyreviewsthetotalcompensationobligationstoeachofourexecutiveofficers.During2019,theCompensationCommitteeretainedTotalRewardsStrategiesLLCtoprovidecompensationrelatedconsultingservices.Specifically,thecompensationconsultantprovidedrelevantmarketdata,currenttrendsinexecutiveanddirectorcompensationandadviceonprogramdesign.Inaccordancewithitscharter,theCompensationCommitteemaydelegatepowerandauthorityasitdeemsappropriateforanypurposetoasubcommitteeofnotfewerthantwomembers.

Nominating and Corporate Governance Committee

Thiscommitteeheldtwomeetingsin2019.ThepurposeoftheNominatingandCorporateGovernanceCommitteeistoevaluatethequalificationsofdirectornominees,torecommendcandidatesforelectionasdirectors,tomakerecommendationsconcerningthesizeandcompositionoftheBoard,todevelopandimplementourcorporategovernancepoliciesandtoassesstheeffectivenessoftheBoard.

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Compliance and Ethics Committee

Thiscommitteeheldfivemeetingsin2019.ThepurposesoftheComplianceandEthicsCommitteearetoassisttheBoardinoverseeing(a)theCompany’sactivitiesintheareasofcorporateresponsibility,complianceandethics,includingoversightoftheStoneridgeIntegrityProgram,(b)incollaborationwiththeAuditCommitteetheCompany’scompliancewithlegalandregulatoryrequirements,and(c)tooverseetheCompany’scommitmenttoestablishingacultureofintegrityandtrust,toconductingallofitsbusinessdealingsincompliancewithapplicablefederal,stateandforeignlaws,rulesandregulationsandtooperatingwiththehigheststandardsofbusinessethics.

Nominations and Nomination ProcessItisthepolicyoftheNominatingandCorporateGovernanceCommitteetoconsiderindividualsrecommendedbyshareholdersformembershipontheBoard.IfashareholderdesirestorecommendanindividualformembershipontheBoard,thenthatshareholdermustprovideawrittennotice(the“RecommendationNotice”)totheSecretaryoftheCompanyatStoneridge,Inc.,39675MacKenzieDrive,Suite400,Novi,Michigan48377,onorbeforeJanuary15forconsiderationbythiscommitteeforthatyear’selectionofdirectorsattheAnnualMeetingofShareholders.

InorderforarecommendationtobeconsideredbytheNominatingandCorporateGovernanceCommittee,theRecommendationNoticemustcontain,ataminimum,thefollowing:

• thenameandaddress,astheyappearontheCompany’sbooks,andtelephonenumberoftheshareholdermakingtherecommendation,includinginformationonthenumberofcommonsharesownedanddate(s)acquired,andifsuchpersonisnotashareholderofrecordorifsuchcommonsharesareownedbyanentity,reasonableevidenceofsuchperson’sownershipofsuchsharesorsuchperson’sauthoritytoactonbehalfofsuchentity;

• thefulllegalname,addressandtelephonenumberoftheindividualbeingrecommended,togetherwithareasonablydetaileddescriptionofthebackground,experience,andqualificationsofthatindividual;

• awrittenacknowledgmentbytheindividualbeingrecommendedthatheorshehasconsentedtotherecommendationandconsentstotheCompanyundertakinganinvestigationintothatindividual’sbackground,experience,andqualificationsintheeventthattheNominatingandCorporateGovernanceCommitteedesirestodoso;

• anyinformationnotalreadyprovidedabouttheperson’sbackground,experienceandqualificationsnecessaryforustopreparethedisclosurerequiredtobeincludedinourproxystatementabouttheindividualbeingrecommended;

• thedisclosureofanyrelationshipoftheindividualbeingrecommendedwithusoranyofoursubsidiariesoraffiliates,whetherdirectorindirect;and

• thedisclosureofanyrelationshipoftheindividualbeingrecommendedwiththeshareholder,whetherdirectorindirect,and,ifknowntotheshareholder,anymaterialinterestofsuchshareholderorindividualbeingrecommendedinanyproposalsorotherbusinesstobepresentedatourAnnualMeetingofShareholders(orastatementtotheeffectthatnomaterialinterestisknowntosuchshareholder).

TheNominatingandCorporateGovernanceCommitteedetermines,andperiodicallyreviewswiththeBoard,thedesiredskillsandcharacteristicsfordirectorsaswellasthecompositionoftheBoardasawhole.Thisassessmentconsidersthedirectors’qualificationsandindependence,aswellasdiversity,age,skill,andexperienceinthecontextoftheneedsoftheBoard.Directorsshouldshareourvaluesandshouldpossessthefollowingcharacteristics:highpersonalandprofessionalintegrity;theabilitytoexercisesoundbusinessjudgment;aninquiringmind;andthetimeavailabletodevotetoBoardactivitiesandthewillingnesstodoso.TheNominatingandCorporateGovernanceCommitteedoesnothaveaformalpolicyspecificallyfocusingontheconsiderationofdiversity;however,diversityisoneofthefactorsthattheNominatingandCorporateGovernanceCommitteeconsiderswhenidentifyingcandidatesandmakingitsrecommendationstotheBoard.Inadditiontotheforegoingconsiderations,generallywithrespecttonomineesrecommendedbyshareholders,theNominatingandCorporateGovernance

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CommitteewillevaluatesuchrecommendednomineesconsideringtheadditionalinformationregardingthemcontainedintheRecommendationNotices.WhenseekingcandidatesfortheBoard,theNominatingandCorporateGovernanceCommitteemaysolicitsuggestionsfromincumbentdirectors,managementandthird-partysearchfirms.Ultimately,theNominatingandCorporateGovernanceCommitteewillrecommendtotheBoardprospectivenomineeswhotheNominatingandCorporateGovernanceCommitteebelieveswillbeeffective,inconjunctionwiththeothermembersoftheBoard,incollectivelyservingthelong-termbestinterestsofourshareholders.

TheNominatingandCorporateGovernanceCommitteerecommendedtotheBoardeachofthenomineesidentifiedin“ElectionofDirectors”beginningonpage5ofthisProxyStatement.

Compensation Committee Interlocks and Insider ParticipationNoneofthemembersoftheBoard’sCompensationCommitteeservedasanofficeratanytimeorasanemployeeduring2019.Inaddition,noCompensationCommitteeinterlocksexistedduring2019.

Communications with the Board of DirectorsTheBoardbelievesthatitisimportantforinterestedpartiestohavetheabilitytosendcommunicationstotheBoard.PersonswishingtocommunicatewiththeBoardmaydosobysendingalettertotheSecretaryoftheCompanyatStoneridge,Inc.,39675MacKenzieDrive,Suite400,Novi,Michigan48377.Theenvelopemustcontainaclearnotationindicatingthattheenclosedletterisa“BoardCommunication”or“DirectorCommunication.”AllsuchlettersmustidentifytheauthorandclearlystatewhethertheintendedrecipientsareallmembersoftheBoardorcertainspecifiedindividualdirectors(suchastheleadindependentdirectorornon-managementdirectorsasagroup).TheSecretarywillmakecopiesofallsuchlettersandcirculatethemtotheappropriatedirectorordirectors.ThedirectorsarenotspokespeoplefortheCompanyandresponsesorrepliestoanycommunicationshouldnotbeexpected.

Transactions with Related Persons

Therewerenoreportabletransactionsinvolvingrelatedpersonsin2019.

Review and Approval of Transactions with Related PersonsTheBoardhasadoptedawrittenstatementofpolicywithrespecttorelatedpartytransactions.Underthepolicy,arelatedpartytransactionisatransactionrequiredtobedisclosedpursuanttoItem404ofRegulationS-KoranyothersimilartransactioninvolvingtheCompanyortheCompany’ssubsidiariesandanyCompanyemployee,officer,director,5%shareholderoranimmediatefamilymemberofanyoftheforegoingifthedollaramountofthetransactionorseriesoftransactionsexceeds$25,000.Arelatedpartytransactionwillnotbeprohibitedmerelybecauseitisrequiredtobedisclosedorbecauseitinvolvesrelatedparties.Pursuanttothepolicy,suchtransactionsarepresentedtotheNominatingandCorporateGovernanceCommitteeforevaluationandapprovalbythecommittee,orifthecommitteeelects,bythefullBoard.Ifthetransactionisdeterminedtoinvolvearelatedparty,theNominatingandCorporateGovernanceCommitteewilleitherapproveordisapprovetheproposedtransaction.Underthepolicy,inordertobeapproved,theproposedtransactionmustbeontermsthatarefairtotheCompanyandarecomparabletomarketrates,whereapplicable.

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EXECUTIVE COMPENSATION

Compensation Discussion and AnalysisInthissectionwedescribethecompensationprogramforourNamedExecutiveOfficers(“NEOs”).Wealsodiscussourcompensationphilosophy,policiesandthedecisionsmadebytheCompensationCommitteeoftheBoardin2019asitrelatestothecompensationofourNEOs.

Named Executive Officers for 2019

Name Title

JonathanB.DeGaynor President&ChiefExecutiveOfficer

RobertR.Krakowiak ExecutiveVicePresident,ChiefFinancialOfficer&Treasurer

ThomasM.Dono,Jr. ChiefLegalOfficer&Secretary

LaurentP.Borne PresidentElectronics&ChiefTechnologyOfficer

RobertR.Willig,Jr. PresidentControlDevices

AnthonyL.Moore(1) VicePresidentOperations(1) Mr.MooreservedasVicePresidentOperationsuntilAugust9,2019whenheleftthecompany.

2019 OverviewWedeliveredstrongperformancein2019asdespitelowersales,theCompanyexperiencedhigheroperatingincomeandnetincomecomparedtoprioryear.TheCompanybelievesthatfocusingourportfolioonsmartproducts,orproductswhichcontainembeddedelectronicsorlogic,willaddressindustrymegatrendsandhaveapositiveimpactonbothourtop-linegrowthandunderlyingmargins.

TheactionsoftheCompensationCommittee(the“Committee”)andourpay-for-performancephilosophyfunctionedsuchthatcompensationearnedbyourexecutiveswasalignedwithourfinancialperformancefor2019.Highlightsfromtheyearandourperformanceareasfollows:

• Ourbusinessunitshavecontinuedtofocusonprofitableandsustainabletoplinegrowthbydevelopingaclearcurrentandfuturevisionofourproducts,technologiesandtargetedcustomers.

• Netsalesdecreasedby3.7%duetolowersalesineachofoursegments.OurControlDevicessegmentnetsalesdecreasedprimarilyasaresultofdecreasedsalesvolumeintheNorthAmericanautomotivemarket,partiallyoffsetbysalesvolumeincreasesinourChinaautomotiveandEuropeanautomotiveaswellastheone-timesaleofproductlinesandassetsrelatedtocertainnon-coreswitchesandconnectors(“Non-coreProducts”).OurElectronicssegmentnetsalesdecreasedprimarilyduetoadecreaseinsalesvolumeinourEuropeancommercialvehiclemarketandunfavorableforeigncurrencytranslationoffsetbyanincreaseinsalesvolumeinourNorthAmericanandChinacommercialvehiclemarketsandincreasedsalesinouroff-highwayvehicleproducts.OurStoneridgeBrazilsegment(previouslyreferredtoas“PST”)netsalesdecreasedduetolowervolumesforourArgentinaaftermarketchannel,audioandalarmproducts,trackingdevicesandmonitoringservicerevenuesoffsetbyhighervolumesforourOEMandfactoryauthorizeddealerinstallerproducts.

• NetincomeattributabletoStoneridge,Inc.in2019increasedby$6.4millioncomparedtoprioryear,whichwasprimarilyduetothegainondisposalofControlDevices’fromtheNon-coreProductsof$33.6millionandtherecoveryofBrazilianindirecttaxesof$6.5millionwhichwereoffsetbydecreasedsalesandgrossmarginandanincreaseinrestructuringcostsof$9.6millionmostlyrelatedtoourpreviouslyannouncedclosureofourCantonfacility.

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Asaresult:

• Performanceonourconsolidatedoperatingincome,excludingtheimpactoftwoexternalevents-theGeneralMotors(“GM”)strikeandtariffsonChineseproducedcomponents(“Chinatariffs”),andfreecashflowfellbelowthebudgetedtargetsforourAnnualIncentivePlan(AIP)andresultinginanoverallweightedachievementof35.4%oftargetfortheconsolidatedportionoftheAIP.

• OurControlDevicessegmentachievedbelowbudgetedtargetsforthedivisionalfinancialmetricsandearned30.3%oftargetfortheAIP.

• OurElectronicssegmentachievedbelowbudgetedtargetsforthedivisionalfinancialmetricsandearned10.1%oftargetfortheAIP.

• OurPSTsegmentexceededthebudgetedtargetsforthedivisionalfinancialmetricsandearned91.4%oftargetfortheAIP.

• Underourlong-termincentiveplan,ourearningspershare(“EPS”)forthe2017-2019performanceperiodexceededthethree-yearcumulativetargetforthe2017grant,resultinginEPSshareawardsat130%oftarget.Ourtotalshareholderreturn(“TSR”)forthesameperformanceperiodwasatthe87thpercentileofourpeergroup,resultinginsharesearnedat174%oftargetfortheTSRmetric.

Compensation Philosophy and ObjectivesOurCompany’scompensationprogramsforexecutiveofficersaredesignedtoattract,retain,motivate,andrewardtalentedexecutiveswhoadvanceourstrategic,operationalandfinancialobjectivesandtherebyenhanceshareholdervalue.Theprimaryobjectivesofourcompensationprogramsforexecutiveofficersareto:

• Attractandretaintalentedexecutiveofficersbyprovidingatotalcompensationpackagethatiscompetitivewiththatofferedbysimilarlysituatedcompanies.

• Createacompensationstructureunderwhichasubstantialportionoftotalcompensationisbasedonachievementofperformancegoals.

• Aligntotalcompensationwiththeobjectivesandstrategiesofourshareholdersandbusiness.

Asubstantialportionofourexecutiveofficers’annualandlong-termcompensationistiedtoquantifiablemeasuresoftheCompany’sfinancialperformance,andthereforewillnotbeearnedunlessatleasttheminimumthresholdperformanceisachieved.

Elements of Compensation

Followingaretheelementsofourexecutivecompensationprogramandtheobjectivesforincludingthem.

Element Type Objective

BaseSalary Cash-fixed Attractandretainhighlyskilledexecutivesbyprovidingmarketcompetitivebasesalarythatisalignedwiththeexecutive'sresponsibilities,experience&performance.

AnnualIncentivePlan Cash-variable Motivateandrewardtheachievementofindividual,divisionand/orcorporatefinancialandoperationalstrategicobjectives.

Long-TermIncentivePlan

Equityand/orCash-variable

Retainandrewardkeyemployees,andaligntheinterestsofemployeeswithourshareholdersandthelong-termsuccessoftheCompany.

Benefits&Perquisites Non-cash Retainkeyemployeesbyprovidingmarketcompetitivehealth,welfare&retirementbenefits,andlimitedperquisitesthatalignwithourcompensationphilosophy.

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Mix of CompensationOurexecutivecompensationisbasedonourpay-for-performancephilosophy,whichemphasizesexecutiveperformancemeasuresthatcloselycorrelatewiththeachievementofbothshort-termperformanceobjectivesandlong-termshareholdervalue.Asignificantportionofourexecutiveofficers’annualandlong-termperformance-basedcompensationisat-risk,withtheamountofriskincreasingwiththeofficer’spositionlevel.Thisprovidesmoreupsidepotentialaswellasdownsideriskformoreseniorpositionsbecausetheyhavegreaterinfluenceonouroverallperformance.

Thereisnopre-establishedpolicyortargetfortheallocationbetweencashandnon-cashorshort-termandlong-termincentivecompensation.Rather,theCommitteereviewscompetitivemarketcompensationinformationprovidedbyourcompensationconsultantandconsiderstheCompany’shistoricalcompensationpracticesindeterminingtheappropriatelevelandmixofincentivecompensationforeachexecutiveposition.

Total Target CompensationTotaltargetcompensationisthevalueofthecompensationpackagethatisintendedtobedeliveredifperformancegoalsaremet.Actualcompensationdependsontheannualandlong-termincentivecompensationpayoutlevelsbasedupontheapplicableperformanceachievementand,forasignificantpercentageoflong-termawards,thepriceofourcommonsharesandtotalshareholderreturn(“TSR”)measuredagainstpeergroupTSR.ThefollowingchartsshowtheweightingofeachelementoftotaltargetcompensationfortheCEO,andaveragefortheotherNEOs.Thisdemonstratesourpay-for-performancephilosophy,showingthatannualandlong-termincentive-basedcompensationcomprisesthemajorityoftotaltargetcompensation.

Compensation Policies & Best PracticesToachievethegoalsofaligningexecutivecompensationwithCompanyperformancewhilemaintainingstrongcorporategovernanceandminimizingrisk,theCommitteeandtheCompanyreviewandadoptpoliciesandbestpracticesthattheybelieveareinthebestinterestoftheCompanyandourshareholders.Followingaresomeofthepracticesthathavebeenadoptedovertimethatwebelievehelpustoachievethesegoals.

• Significantemphasisonperformance-basedcompensation

• UseofanindependentcompensationconsultantwhosefirmdoesnootherworkfortheCompany

• Annualbenchmarkingofcompensationmixandlevelsforexecutiveofficerstoensurecompetitiveness

• UseoftheTSRmetricinthelong-termincentiveplantoalignexecutiveandshareholderinterests

• Includecapsonboththeannualincentiveplanandthelong-termincentiveplan

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• Providelimitedperquisitestoexecutiveofficers

• Maintainstockownershipguidelinesforourexecutiveofficersandnon-employeeDirectors

• Establishedanti-hedgingandanti-pledgingpolicies

• Recoupmentofcompensation(“clawback”)policy

• Conductanannualcompensationriskassessment

The Compensation CommitteeTheCommitteehastheresponsibilityfordeterminingthecompensationpaidtotheCompany’sexecutiveofficers.Incarryingoutitsresponsibilities,amongotherthings,theCommitteedoesthefollowing:

• Ensuresthereisaclear,reasonableandlogicallinkagebetweenexecutiveofficercompensationprogramsandoverallCompanyperformance

• ConsiderscomparisontotheCompany’sestablishedComparatorGroupandthebroadermarkettoensureappropriatemixandlevelofcompetitivenessofcompensation

• Reviewsandapprovesannualbasesalarylevels,annualincentiveplantargets,andlong-termincentiveplantargets,inalignmentwiththelevelandperformanceofeachNEOaswellasCompanyperformanceandmarketconditions

• Reviews,advisesonandapprovesneworrevisedcompensationplans

Independent Compensation ConsultantTheCommitteeretainstheservicesofanindependentcompensationconsultanttoassisttheCommitteewiththefollowing:

• Appraisingofrelevanttrendsandcompensationdevelopmentsinthemarket

• Providingadviceregardingissuessuchaslong-termincentivesandchangeincontrolarrangementsandothertopicsasneeded

• ProvidingComparatorGroupanalysis

• ProvidingmarketdatafortheCEOpositionandotherexecutiveofficers

In2019,theCommittee’scompensationconsultantwasTotalRewardsStrategies,LLC(“TRS”).

ManagementTheCommitteeconsiderstherecommendationsandevaluationsoftheCEOwhensettingthecompensationoftheotherexecutiveofficers.

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Comparator GroupTheComparatorGroupiscomprisedofsomeofourdirectcompetitorsandabroadergroupofcompaniesintheelectronicandmotorvehiclepartsmanufacturingindustriesthattheCommitteebelievesisrepresentativeofthelabormarketfromwhichwerecruitexecutivetalent.TheCommitteereviewsandapprovestheComparatorGroupannually.InMarch2019,theCommittee’sreviewoftheComparatorGroupresultedintennewcompaniesbeingaddedandtencompaniesbeingremoved.FactorsconsideredbytheCommitteeinselectingComparatorGroupcompaniesinclude,butarenotlimitedto,industrysegment,revenue,profitability,numberofemployeesandmarketcapitalization.ThecompaniesintheresultingComparatorGroupin2019were:

AllisonTransmission Donaldson MethodeElectronics

AltraIndustrialMotion DormanProducts ModineManufacturing

CalAmp FranklinElectric Rogers

CIRCOR Gentex ShilohIndustries

ColumbusMcKinnon Gentherm StandardMotorProducts

CommercialVehicleGroup LCIIndustries StrattecSecurity

Cooper-StandardHoldings Littelfuse SuperiorIndustries

CTS Lydall TowerInternational

Curtiss-Wright MartinreaInternational Visteon

DelphiTechnologies Meritor WabashNational

Compensation BenchmarkingTRSprovidestheCommitteewiththe50thand75thpercentilesoftheComparatorGroupforbasesalary,cashbonus,long-termincentivesandtotaloverallcompensation.TheCommitteeusesasaprimaryreferencepointthe50thpercentilewhendeterminingbasesalary,annualincentiveandlong-termincentivetargets;eachelementofpayisadjustedtoreflectcompetitivemarketconditions.Thegoaloftheexecutivecompensationprogramistotargetoverallcompensationatthe50thpercentileofpaypracticesoftheComparatorGroupofcompanies.ActualtargetpayforanindividualmaybemoreorlessthanthereferencedpercentilesbasedontheCommittee’sevaluationoftheindividual’sperformanceandpotential.ConsistentwiththeCommittee’sphilosophyofpay-for-performance,incentivepaymentscanexceedtargetlevelsonlyifoverallCompanyfinancialtargetsareexceededandwillfallbelowtargetlevelsifoverallfinancialgoalsarenotachieved.

In2019,theCommitteeapprovedanincreasetoMr.DeGaynor’stotalcompensationtomorecloselyalignwiththecompetitivemarketrate.TheincreasereflectedCEOpaylevelsofourComparatorGroupaswellasMr.DeGaynor’sperformance,tenureandexperience.

Consideration of Shareholder Advisory Vote on Executive CompensationAtour2019AnnualMeetingofShareholders,ourshareholdersapprovedourcompensationadvisoryresolutionwith98.2%ofthevotescastonthesay-on-payproposalvotedfortheproposalonthe2018executivecompensationdescribedinour2019ProxyStatement.TheCommitteebelievestheshareholdersvoteaffirmstheCompany’sapproachtoexecutivecompensation.

Base SalaryBasesalaryisthefoundationofourcompensationprogramforourexecutiveofficers.Theannualcashincentivecompensationawardsandlong-termincentiveawardsaretypicallybasedonapercentageofbasecompensation.Thebasesalaryissetatcompetitivemarketlevelstoattractandretainourexecutiveofficers.Basesalarylevelsforourexecutiveofficersaresetonthebasisoftheexecutive’sresponsibilities,thecurrentgeneralindustry,andcompetitivemarketdata,asdiscussedabove.Ineachcase,dueconsiderationisgiventoindividualfactors,suchastheofficer’sexperience,competencies,performanceandcontributions,andtoexternalfactors,suchassalariespaidtosimilarlysituatedexecutiveofficersbylike-sizedcompaniesandinparticularourComparatorGroup.TheCommittee

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considerstheevaluationandrecommendationoftheCEOindeterminingthebasesalaryoftheotherexecutiveofficers.TheCommitteegenerallyapprovesexecutiveofficerbasesalariesatitsDecembermeeting,whichbecomeeffectiveJanuary1ofthefollowingyear.

Executiveofficers’basesalariesremainfixedthroughouttheyearunlessapromotion,changeinresponsibilities,orspecialcircumstancesoccur.

Annual Incentive AwardsOurexecutiveofficersparticipateinourAnnualIncentivePlan(“AIP”)whichprovidesforannualcashpaymentsbasedontheachievementofspecificfinancialgoals.Asdescribedabove,theCompanybelievesthatasubstantialportionofeachexecutive’soverallcompensationshouldbedirectlytiedtoquantifiablemeasuresoffinancialperformance.AttheMarch2019CompensationCommitteemeeting,theCommitteeapprovedtheCompany’s2019AIPtargetsandperformancemetrics.TheAIPtargetsareexpressedasapercentageoftheexecutiveofficer’sbasesalary.

For2019,thestructureofourAIPincludedbothconsolidatedfinancialperformancemetricsand,whereappropriate,divisionalmetricstoincentivizespecificperformance.Inaddition,thereisanindividualperformancemetricforexecutiveofficers(excludingMr.DeGaynor)andotherleadersintheCompanyasawaytoincentivizeandrewardspecificstrategicandmeasurableactivitiesthatareparticulartoeachleader’sareaofresponsibility.Theindividualmetricsareconsideredcriticaltotheachievementoftheoverallfinancialandoperationalmetrics.TheindividualperformancemetricfunctionsasamultipliertotheoverallWeightedAchievement,andcanrangefrom90%to110%.

Theconsolidatedanddivisionalfinancialperformancemetrictargetswereestablishedbasedonour2019businessplan.Thetargetswereintendedtobechallengingbutachievablebasedonindustryconditionsknownatthetimetheywereestablished.Underthe2019AIP,thethresholdlevelforachievementontheconsolidatedanddivisionalfinancialmetricswasbasedon80%oftargetwhilethemaximumlevelwasbasedon130%oftarget.

Foreachperformancemetric,specificlevelsofachievementforthreshold,target,andmaximumwereestablished.Attarget,100%payoutisachievedforeachelementoftheplan;atmaximum,200%payoutisachieved;andatthreshold,50%payoutisachieved.Belowthethreshold,noincentiveisearnedonthatmetric.ThresholdachievementontheOperatingIncomemetricisrequiredfortheothermetricstopayoutabovetheirthresholdlevels.TheAIPincentivecompensationpayoutearnedbetweenthethresholdandmaximumlevelsisprorated.

ThestatedobjectivesoftheAIPincluderetainingkeyemployeesandrewardingthemforperformancealignedwiththegrowthandprofitabilityofStoneridge.In2019,thereweretwoexternaleventsthatimpactedConsolidatedOperatingIncome–theGeneralMotors(“GM”)strikeandtariffsonChineseproducedcomponents(“Chinatariffs”).Mr.DeGaynorrequestedthattheCommitteeconsideradjustmentstoConsolidatedOperatingIncometoexcludetheimpactoftheseexternalevents,fortheemployeesotherthanhimselfwhoparticipateinAIP.Therationalewasthattheseeventswereoutsideofmanagement’scontrol,andtheintentwastodrivecontinuedmotivationandretentionofkeyteammembers.

TheCommitteeconsideredtherequestanduseditsdiscretiontoapprovetheadjustmentstothe2019ConsolidatedOperatingIncomeresultstoexcludetheimpactoftheGMstrikeandChinatariffs,whichwereexternalfactorsbeyondmanagement’scontrol.Mr.DeGaynordidnotreceiveapaymentunderthe2019AIPastheCompany’sunadjustedresultsdidnotachievethethresholdConsolidatedOperatingIncome.

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TheAIPmetrics,weighting,metricperformancetargets,andachievementfor2019aresummarizedasfollows:

Mr.Krakowiak,Mr.Dono: Weight Metric TargetAchievement

(1),(2)

Consolidated Metrics:

OperatingIncome 70% $67.7million 51%

FreeCashFlow 30% $51.0million 0%

OverallWeightedAchievement 35.4%

Mr.Borne: Weight Metric TargetAchievement

(1),(2)




Divisional Metrics:



OverallWeightedAchievement 22.7%

Mr.Willig: Weight Metric TargetAchievement

(1),(2)




Divisional Metrics:



OverallWeightedAchievement 30.3%(1) ResultsexcludetheimpactofthedivestitureofourControlDevices’non-coreswitchesandconnectorsproductlines,

restructuringcosts,businessrealignmentcostsandfairvalueadjustmentswhichoccurredinQ32019.(2) TheCommitteeapprovedadjustmentstoConsolidatedOperatingIncomeresultsfortheGMstrikeandChinatariffsas

externaleventsthatwereoutsideofmanagement’scontrol.

Thefollowingtableprovidesthe2019AIPtargetsandachievementasapercentofbasesalaryandasadollaramountforourNEOs.

Executive Officer

Percent of Base Salary

Target

Percent of Target Bonus

AchievedTarget Bonus

Achieved Bonus(1)

JonathanB.DeGaynor 103% 0.0% $850,000 $ —

RobertR.Krakowiak 75% 35.4% 349,313 123,657

ThomasM.Dono,Jr. 60% 35.4% 232,140 82,178

LaurentP.Borne 50% 22.7% 169,000 38,363

RobertR.Willig,Jr. 50% 30.3% 169,000 51,207

AnthonyL.Moore(1) 50% 0.0% 122,859 —(1) Mr.Mooredidnotreceiveabonusbecausehewasnotemployedatthetimeofpayoutasrequiredundertheplan.

Thepaymentofcompensationunderthe2019AIPplanwassubjecttoouroverallperformanceandisincludedinthe“Non-EquityIncentivePlanCompensation”columnoftheSummaryCompensationTable.

InadditiontoAIP,Mr.Bornereceivedasign-onbonusintheamountof$80,000.

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Long-Term Incentive AwardsWebelievethatlong-termincentiveawardsareavaluablemotivationandretentiontoolandprovidealong-termperformanceincentivetomanagement.UnderourLong-TermIncentivePlan(“LTIP”),executiveofficersmaybegrantedshareoptions,restrictedcommonsharesandotherequity-basedawards.UnderourLong-TermCashIncentivePlan(“LTCIP”),whichwasnotusedin2019,executiveofficersmaybegrantedawardspayableincash.Thelong-termawardsarecalculatedbasedonthefairvalueoftheshares,sharesequivalentorcashatthetimeofgrant.In2019,weusedthefollowinglong-termincentivevehiclestoprovidegrantstoourexecutiveofficers.

• Time-Based Restricted Share Units (“RSUs”):RSUsprovidestrongretentionvaluebygrantingtherecipientstherighttoreceivecommonshares(onaone-for-onebasisforthenumberofRSUsgranted)afterathree-yearvestingperiod,providedthattheexecutiveofficerisstillemployedbytheCompany.

• Performance-Based Share Units (“Performance Shares”) - Total Shareholder Return:TheseawardsmaybeearnedbasedonourTSRoverathree-yearperiodrelativetotheTSRofour2019PeerGroup,whichiscomprisedofour2019ComparatorGroupofcompanies.ThefollowingtableshowsthepayoutlevelsassociatedwithTSRpercentileranking.WebelievetheuseoftheTSRmetriceffectivelyalignsexecutiveandshareholderinterests.ThePerformanceSharesearnedbasedontheTSRmetricwillbepaidafterathree-yearvestingperiodbytheissuanceonaone-for-onebasisofcommonshares.

SRI TSR v. Peer Group Calculation of # of SharesShares Earned as a % of Target Shares

50th-100thpercentile SRIpercentilex2.0 100%-200%

30th-49thpercentile 50%+{2.5x(SRIpercentile-30)} 50%-99%

<30thpercentile n/a 0%

• Performance Shares - Earnings Per Share:In2019,wegrantedPerformanceSharesthatmaybeearnedafterthreeyearsbasedonperformancerelativetoapre-determinedthreshold,targetandmaximumcumulativeEPSmetricoverathree-yearperiod.Belowthethreshold,noshareswillbeearned.Themaximumsharesthatmaybeearnedis200%oftarget.ThetargetEPSfor2019wassetusingtheBoard-approvedbudget,withanadditional10%addedforeachofthenexttwoyearsinthevestingperiod.Thethresholdissetat70%oftargetandthemaximumissetat130%.Providedtheexecutiveofficerremainsemployed,anddependingonperformancerelativetotheEPStarget,thenumberofPerformanceSharesvestedproratesbetweenminimumandmaximumamounts.ThePerformanceSharesearnedbasedontheEPSmetricwillbepaidafterathree-yearvestingperiodbytheissuanceonaone-for-onebasisofcommonshares.

Threshold Target Maximum

CumulativeEPS $3.89 $5.56 $7.23

• Performance Shares – Return on Invested Capital (ROIC):In2019,wegrantedPerformanceSharesthatmaybeearnedafterthreeyearsbasedonperformancerelativetoapre-determinedthreshold,targetandmaximumaverageROICmetricoverathree-yearperiod.Belowthethreshold,noshareswillbeearned.Themaximumsharesthatmaybeearnedis200%oftarget.ThetargetROICfor2019wassetusingtheBoard-approvedbudget,withanadditional10%addedforeachofthenexttwoyearsinthevestingperiod,andthentakinganaverageofthethreeyears.Thethresholdissetat70%oftargetandthemaximumissetat130%.Providedtheexecutiveofficerremainsemployed,anddependingonperformancerelativetotheROICtarget,thenumberofPerformanceSharesvestedproratesbetweenminimumandmaximumamounts.ThePerformanceSharesearnedbasedontheROICmetricwillbepaidafterathree-yearvestingperiodbytheissuanceonaone-for-onebasisofcommonshares.

Threshold Target Maximum

AverageROIC 13.2% 18.9% 24.6%

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ThefollowingchartshowstheallocationoftheLTIPawardsthatweregrantedin2019:

TheCommitteedeterminesthevalueoftheannualgranttotheexecutiveofficersbyconsideringthecomparisontoourComparatorGroupobtainedduringtheannualcompensationreviewprocess,aswellastheexecutives’responsibilities,performanceandpotentialcontributions.Thetargetedvalueof2019LTIPgrantswereestablishedaslistedinthetablebelow.

Executive Officer

TargetedValue

2019 Grant

JonathanB.DeGaynor $2,450,000

RobertR.Krakowiak 698,625

ThomasM.Dono,Jr. 425,590

LaurentP.Borne 338,000

RobertR.Willig,Jr. 338,000

AnthonyL.Moore 347,069

ThegrantdatefairvalueoftheRSUsandPerformanceSharesawardedin2019areincludedinthe“StockAwards”columnoftheSummaryCompensationTable.TheRSUsawardedin2019areincludedinthe“AllOtherStockAwards”columnoftheGrantsofPlan-BasedAwardstable,andthegrantdatefairvalueofthePerformanceSharesawardedareincludedinthe“EstimatedFuturePayoutsUnderEquityIncentivePlanAwards”columnsoftheGrantsofPlan-BasedAwardstable.

TheCommittee’spracticehasbeentoapprovethelong-termincentiveawardsatthefirstregularmeetingofthecalendaryear.Asageneralpractice,awardsunderthelong-termincentiveplansareapprovedonceayearunlessasituationariseswherebyacompensationpackageisapprovedforanewlyhiredorpromotedexecutiveofficerandequity-basedcompensationisacomponent.

InadditiontohisLTIPgrantatthetargetedvalueshownabove,Mr.Krakowiakreceivedanadditionalgrantof16,644time-basedshareswithagrantvalueof$500,000thatvestinthreeyears.Thisgrantwasinrecognitionofperformanceandforretentionpurposes.ThisgrantisincludedintheGrantsofPlan-BasedAwardstable.

2017 Grant of RSUs and Performance SharesTheperformanceperiodforthePerformanceSharesthatweregrantedin2017endedonDecember31,2019.ThesharesvestedonMarch6,2020,asshownbelow.ThesesharesareincludedfortheNEOs,asapplicable,inthe“OutstandingEquityAwardsatYear-End”table.

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2017 LTIP Grant - Performance Period Results

Award Type & MetricGrant

DateVest Date

Allocationof Shares

Performance Results (2017-2019)

Payout % of Target Shares

Time-BasedRSUs 3/6/2017 3/6/2020 45% n/a 100%

PerformanceShares-TSR 3/6/2017 3/6/2020 30% 87th%ileofPeerGroup 174%oftarget

PerformanceShares-EPS 3/6/2017 3/6/2020 25% 118%oftarget 130%oftarget

TheTSRPeerGroupforthe2017grantconsistedofthefollowingcompanies(1):

AltraIndustrialMotion EnProIndustries MethodeElectronics

AVX ESCOTechnologies ModineManufacturingCompany

BarnesGroup FranklinElectric OSISystems

ChartIndustries Gentex Rogers

CIRCOR Gentherm ShilohIndustries

ColumbusMcKinnon Graco SpartanMotors

CommercialVehicleGroup KEMET StandardMotorProducts

CTS Littelfuse SuperiorIndustries

DormanProducts Lydall WabashNational

EnerpacToolGroup(2) Meritor (1) TowerInternationalwasintheoriginalComparatorGroupbuthassincebeenexcludedbecauseitwasacquiredon

September30,2019.(2) EnerpacToolGroupwaspreviouslyknownasActuant.

PerquisitesWeprovideexecutiveofficerswithlimitedperquisitesthatweandtheCommitteebelievearereasonableandconsistentwiththeoverallcompensationprogramtobetterenableustoattractandretainsuperioremployeesforkeypositions.TheCommitteeperiodicallyreviewsthelevelsofperquisitesprovidedtoexecutiveofficers.

Perquisitesthatareprovidedtoexecutiveofficersaredifferentbyindividualandmightincludeanautoallowanceorspousaltravel.TheincrementalcostsoftheperquisiteslistedabovefortheNEOsareincludedinthe“AllOtherCompensation”columnoftheSummaryCompensationTable.

Employment AgreementsWeuseemploymentagreementsinlimitedsituations.In2015,weenteredintoanegotiatedemploymentagreementwithMr.DeGaynorwhichremainsineffect.Thisagreementprovidesforaminimumbasesalaryof$500,000;participationintheannualincentiveplanatatargetof100%ofbasesalary;amonthlyautoallowance,participationintheCompany’scustomarybenefitplansincludinganannualexecutivephysical;andparticipationinthelong-termincentiveplan.Inaddition,ifMr.DeGaynoristerminatedwithoutcause,wewillbeobligatedtopayhimthesumofhisannualbasesalaryandtargetannualincentiveaswellashealthandwelfarebenefitsforoneyear,andiftheterminationoccursinthelastsixmonthsofthefiscalyear,hewouldbepaidaproratedannualincentive.

TheCompanyhasnotenteredintoanemploymentagreementwithanyotherNEO.

Severance PlanTheCompanyprovidesexecutiveseverancethroughtheOfficers’andKeyEmployees’SeverancePlan(the“SeverancePlan”).TheNEOscoveredundertheSeverancePlanincludeMr.Krakowiak,Mr.Dono,Mr.Borne,Mr.WilligandMr.Moore.Ifacoveredexecutiveisterminatedbyuswithoutcause,wewillbeobligatedundertheSeverancePlantopaytheexecutive’ssalaryfor12monthsandcontinuehealthandwelfarebenefitscoverageoverthesameperiodoftime.Mr.DeGaynor’sseveranceprotectionisprovidedinhisemploymentagreementasdescribedabove.

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Termination and Change in Control PaymentsWehaveenteredintochangeincontrolagreementswithMr.DeGaynor,Mr.Krakowiak,Mr.Dono,Mr.Borne,Mr.WilligandMr.Moore,andcertainotherseniormanagementemployees.Theseagreementsaredesignedtopromotestabilityandcontinuityofseniormanagement,bothofwhichareinthebestinterestofStoneridgeandourshareholders.Ourterminationandchange-in-controlprovisionsfortheNEOsaresummarizedbelowunder“PotentialChangeinControlandOtherPost-EmploymentPayments.”

Tax Deductibility of CompensationSection162(m)oftheInternalRevenueCode(“Code”)generallylimitstaxdeductibilityofcompensationpaidbyapubliccompanytoitschiefexecutiveofficerandcertainotherexecutiveofficersinanyyearto$1millionintheyearcompensationbecomestaxabletotheexecutive.Priortothe2017TaxCutsandJobsAct,certaincompensationwasexemptfromthedeductionlimittotheextentitmettherequirementstobeconsidered“qualifiedperformance-basedcompensation”aspreviouslydefinedinSection162(m).The2017TaxCutsandJobsActeliminatedthatexemption.CertainarrangementsenteredintopriortoNovember2,2017areconsidered“grandfathered”andcompensationpaidundersucharrangementswillcontinuetobedeductibleuntilthearrangementsaremateriallymodified.

TheCompensationCommitteehashistoricallyconsideredSection162(m)inthedesignofincentiveplanstopreservethecorporatetaxdeductibilityofcompensation.However,inlightofthechangestoSection162(m),theCommitteeanticipatesthatalargerportionoffuturecompensationpaidtotheCompany’sNEOswillbesubjecttoataxdeductiondisallowanceunderSection162(m).TheCompensationCommitteerecognizesthatfactorsotherthantaxdeductibilityshouldbeconsideredindeterminingtheformsandlevelsofexecutivecompensationmostappropriateandinthebestinterestsoftheCompanyanditsstockholders.Annually,theCompensationCommitteereviewsallcompensationprogramsandpayments,includingthetaximpactontheCompany.

Accounting Treatment of CompensationAsoneofmanyfactors,theCommitteeconsidersthefinancialimpactindeterminingtheamountofandallocationofthedifferentpayelements,includingFinancialAccountingStandardsBoard(“FASB”)AccountingStandardsCodification(“ASC”)Topic718StockCompensation.

Share Ownership GuidelinesTheCommitteehasestablishedshareownershipguidelinesforourexecutiveofficerstoenhancethelinkagebetweentheinterestsofourexecutiveofficersandthoseofourshareholders.TheseguidelinesprovidethattheCEO,CFOandotherexecutiveofficersmustretainCompanycommonsharesequalinmarketvaluetofive,fourandthreetimes,respectively,oftheirannualbasesalaries.TheexecutiveofficershaveafiveyearaccumulationperiodtoachievecomplianceandarerestrictedfromsellinganycommonsharesearnedunderaCompanyequity-basedcompensationplanuntiltheirownershipguidelinehasbeenreached.Theaccumulationperiodbeginsonthedateoftheirfirstgrantfollowingtheirdateofhireorpromotionwhichsubjectsthemtotheguidelines.

Clawback PolicyTheCompanyadoptedaclawbackpolicywhichprovidesforrecoupmentofperformance-basedexecutivecompensationintheeventofanaccountingrestatementresultingfrommaterialnoncompliancewithfinancialreportingrequirementsunderfederalsecuritieslaws.Thepolicyappliestocurrentandformerexecutivesandrequiresreimbursementorforfeitureofanyexcessperformance-basedcompensationreceivedbyanexecutiveduringthethreecompletedfiscalyearsimmediatelyprecedingthedateonwhichtheCompanyisrequiredtoprepareanaccountingrestatement.

Compensation Risk AssessmentTheCompensationCommitteereviewstheCompany’sincentivecompensationstructurepracticesforallemployeestoevaluateanyrisksassociatedwiththeCompany’scompensationprograms.

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Aspartoftheevaluation,theCompensationCommitteereviewsacompensationriskassessmentthatwaspreparedbyCompanymanagementanditsindependentcompensationconsultant.ThecompensationriskassessmentanalyzesallCompanycompensationprogramsforvariouscategoriesofcompensationrelatedrisk.

TheCompensationCommitteeconsiders,amongotherfactors,thedesignoftheincentivecompensationprograms,whicharecloselyalignedtocorporateperformance,themixofshorttermandlongtermcompensation,themaximumpayoutlevelsforshorttermandlongtermincentives,thedistributionofcompensationbetweenequityandcash,andotherfactorsthatmitigaterisk.

TheCompensationCommitteedeterminedthattheCompany’scompensationpoliciesandpracticesdonotcreaterisksthatarereasonablylikelytohaveamaterialadverseeffectontheCompany.

Compensation Committee ReportWehavereviewedanddiscussedwithmanagementtheCompensationDiscussionandAnalysisrequiredbyItem402(b)ofRegulationS-Kand,basedonthatreviewanddiscussion,werecommendedtotheBoardthattheCompensationDiscussionandAnalysisbeincludedinthisProxyStatement.

The Compensation Committee KimKorth,Chairperson JeffreyP.Draime DouglasC.Jacobs WilliamM.Lasky

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Summary Compensation Table

ThefollowingtableprovidesinformationregardingthecompensationofourNEOsfor2019.

Name and Principal Position Year

Salary ($)

Bonus ($)(1)

StockAwards

($)(2)

Non-Equity Incentive PlanCompensation

($)(3)

All Other Compensation

($)(4)Total

($)

JonathanB.DeGaynorPresident & Chief Executive Officer

2019 $825,000 $ — $2,449,942 $ — $ 28,222 $3,303,164

2018 750,000 — 1,800,013 564,000 28,022 3,142,035

2017 615,000 — 1,299,862 832,095 26,408 2,773,365

RobertR.KrakowiakEVP, Chief Financial Officer & Treasurer

2019 465,750 — 1,198,566 123,657 12,787 1,800,760

2018 433,800 — 535,648 228,352 12,472 1,210,273

2017 408,333 275,250 499,904 395,020 9,480 1,587,987

ThomasM.Dono,Jr.Chief Legal Officer & Secretary

2019 386,900 — 425,517 82,178 11,560 906,154

2018 359,853 — 364,848 150,964 10,066 885,730

LaurentP.BornePresident Electronics& Chief TechnologyOfficer

2019 338,000 80,000 337,950 38,363 176,824 971,137

RobertR.Willig,Jr. 2019 338,000 — 337,950 51,207 12,232 739,389

2018 325,000 85,000 324,962 90,090 12,032 837,084

AnthonyL.Moore 2019 245,719 — 347,022 — 415,678 1,008,419

2018 321,360 — 321,291 120,831 36,756 800,238

2017 309,000 25,000 308,858 229,384 1,518 873,760

(1) OtherBonusforMr.Borneconsistedofan$80,000sign-onbonuspaidsixmonthsafterhire.(2) Theamountsincludedinthe“StockAwards”columnrepresentthegrantdatefairvalueoftime-basedRSUsand

PerformanceSharescomputedinaccordancewithFASBASCTopic718.Foradiscussionofvaluationassumptions,seeNote7toourconsolidatedfinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2019.In2019,RSUsandPerformanceShareawardsweregrantedtoourNEOs.ThePerformanceShareawardswereexpectedtobeearnedatthetargetlevelwhengranted;themaximumvalueofthePerformanceShareawardsonthedateofgrantforMr.DeGaynor,Mr.Krakowiak,Mr.Dono,Mr.Borne,Mr.Willig,andMr.Mooreare,respectively,$2,694,888,$768,423,$468,023,$371,714,$371,714,and$381,688.Pleaseseethe“GrantsofPlan-BasedAwardsfor2019”tableformoreinformationregardingtheRSUsandPerformanceSharesgrantedin2019.

(3) TheamountshownforeachNEOinthe“Non-EquityIncentivePlanCompensation”columnisattributabletoanannualincentiveawardearnedundertheAIPinthefiscalyearlisted.

(4) Theamountsshownfor2019inthe“AllOtherCompensation”columnarecomprisedofthefollowing:

Executive OfficerAuto

Allowance401(k) Match

GroupTerm

Life Ins

Tax Paidto

Foreign Govt Other(1) Total

JonathanB.DeGaynor $14,400 $11,200 $2,622 $ — $ — $ 28,222

RobertR.Krakowiak — 11,200 1,587 — — 12,787

ThomasM.Dono,Jr. — 11,200 360 — — 11,560

LaurentP.Borne — 8,208 240 34,357 134,019 176,824

RobertR.Willig,Jr. — 11,200 1,032 — — 12,232

AnthonyL.Moore — — 1,892 — 413,786 415,678

(1) ForMr.Borne,thesearecostsrelatedtohiscompany-initiatedrelocationtoSweden,includinghousing,transportation,educationfordependents,relocationexpenses,andtaxreimbursements.ForMr.Moore,400,000representsaseparationpaymentand13,786representstaxreimbursementforcommutingexpenses.

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Grants of Plan-Based Awards in 2019

All OtherStock

Awards: Number

of Shares

of Units

(#)(3),(4)

GrantDate

Fair Valueof

Stock and Option

Awards ($)(5)

Estimated Future PayoutsUnder

Non-Equity Incentive PlanAwards (1)

Estimated Future PayoutsUnder

Equity Incentive PlanAwards(2)

Executive OfficerGrantDate

Threshold($)

Target ($)

Maximum($)

Threshold(#)

Target (#)

Maximum(#)

JonathanB.DeGaynor $425,000 $850,000$1,700,000

3/4/2019 22,426 44,855 89,710 36,701 $2,449,942

RobertR.Krakowiak 174,656 349,313 698,625

3/4/2019 6,394 12,790 25,580 27,109 1,198,566

ThomasM.Dono,Jr. 116,070 232,140 464,280

3/4/2019 3,894 7,790 15,580 6,375 425,517

LaurentP.Borne 84,500 169,000 338,000

3/4/2019 3,093 6,187 12,374 5,063 337,950

RobertR.Willig,Jr. 84,500 169,000 338,000

3/4/2019 3,093 6,187 12,374 5,063 337,950

AnthonyL.Moore 61,430 122,859 245,719

3/4/2019 3,176 6,353 12,706 5,199 347,022

(1) Theamountsshownreflectawardsgrantedunderour2019AIP.InMarch2019,theCompensationCommitteeapprovedthe2019targetAIPawardsexpressedasapercentageoftheexecutiveofficer’s2019approvedbasesalary,andCompanyandindividualperformancemeasuresforthepurposeofdeterminingtheamountpaidoutundertheAIPforeachexecutiveofficerfortheyearendedDecember31,2019.Pleasesee“CompensationDiscussionandAnalysis–AnnualIncentiveAwards”formoreinformationregardingtheCompany’s2019awardsandperformancemeasures.

(2) TheamountsshownreflectgrantsofPerformanceShareawardsmadeunderourLTIPonMarch4,2019.TheamountofthePerformanceSharesthatwillbeearnedwillbedeterminedbasedonourtotalshareholderreturncomparedtothatofadefinedpeergroupfor25%oftheawards,andbasedonourEPSperformancefor20%oftheawards,andbasedonourROICperformancefor10%oftheawardsfortheperformanceperiodJanuary1,2019throughDecember31,2021.TheshareswillvestonMarch4,2022,assumingthegranteeisstillemployedonthatdate.

(3) Theamountsshownreflectgrantsoftime-basedRSUsmadeunderourLTIP.TheseRSUsweregrantedonMarch4,2019.Thetime-basedgrantcomprises45%ofthetotalLTIPaward,andwillbeearnedonMarch4,2022,assumingthegranteeisstillemployedonthatdate.

(4) TheamountshownforMr.Krakowiakincludesagrantof16,644time-basedshareswithagrantvalueof$500,000receivedinrecognitionofperformanceonMarch4,2019.TheseshareswillbeearnedonMarch4,2022,assumingMr.Krakowiakisstillemployedonthatdate.

(5) Theamountsincludedin“FairValueofAwards”columnrepresenttheaggregategrantdatefairvalueoftheawardscomputedinaccordancewithFASBASCTopic718.Foradiscussionofvaluationassumptions,seeNote8toourconsolidatedfinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2019.

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Outstanding Equity Awards at Year-End

STOCK AWARDS

Executive Officer

Number of Sharesor Units of Stock

That Have Not Vested (#)

Market Value of Shares or Units

of Stock That Have Not Vested ($)(1)

Equity Incentive Plan Awards: Number of

Unearned Shares, Unitsor Other Rights That

Have Not Vested (#)

Equity Incentive Plan Awards: Market or

Payout Value of Unearned Shares,

Units or Other Rights That Have Not Vested

($)(1)

JonathanB.DeGaynor 31,230(2) $ 915,664 58,365(7) $1,711,262

33,100(3) 970,492 62,530(8) 1,833,380

36,701(4) 1,076,073 65,244(9) 1,912,954

RobertR.Krakowiak 12,010(2) 352,133 22,448(7) 658,175

9,850(3) 288,802 18,610(8) 545,645

27,109(4) 794,836 18,604(9) 545,469

ThomasM.Dono,Jr. 6,710(3) 196,737 12,670(8) 371,484

6,375(4) 186,915 11,331(9) 332,225

LaurentP.Borne 5,460(4) 160,087 10,313(10) 302,377

5,063(5) 148,447 8,999(9) 263,851

3,517(6) 103,118

RobertR.Willig,Jr. 5,980(3) 175,334 11,280(8) 330,730

5,063(5) 148,447 8,999(9) 263,851

AnthonyL.Moore 7,420(2) 217,554 13,870(7) 406,668

5,910(3) 173,281 11,160(8) 327,211

5,199(5) 152,435 9,241(9) 270,946

(1) Time-basedrestrictedshareunits(RSUs)andPerformanceSharesarepaidaftertheendoftheperformanceperiodandonthevestingdatesshowninthefollowingfootnotes.WithregardtoPerformanceSharestheactualnumberofcommonsharespaidoutisdependentupontheachievementoftherelatedperformanceobjectives.Inthiscolumn,thetheoreticalvalueofthenumberofoutstandingRSUsandPerformanceShares,asapplicable,reportedinthecolumntotheimmediateleftisbasedonthepriceofourcommonsharesonDecember31,2019($29.32).IncalculatingthenumberofPerformanceSharesandtheirvalue,wecomparetheCompany’sperformancethrough2019undereachoutstandingperformancesharegrantagainstthethreshold,target,andmaximumperformancelevelsforthegrantandreportinthiscolumntheapplicablepotentialpayoutamount.Iftheperformanceisbetweenlevels,wereportthepotentialpayoutatthenexthighestlevel.

(2) Thesetime-basedRSUsvestonMarch6,2020.(3) Thesetime-basedRSUsvestonMarch6,2021.(4) Thesetime-basedRSUsvestonMarch10,2021(5) Thesetime-basedRSUsvestonMarch4,2022.(6) Thesetime-basedRSUsvestonSeptember10,2020.(7) ThesePerformanceSharesarescheduledtovestonMarch6,2020subjecttoactualperformanceonspecifiedfinancial

performancemetrics.PerformanceonTSRandEPSwasbetweentargetandmaximumfortheperformanceperiodthatendedDecember31,2019.

(8) ThesePerformanceSharesarescheduledtovestonMarch6,2021subjecttoachievementofspecifiedfinancialperformancemetrics.PerformanceiscurrentlyforecastedtobeabovetargetforTSR(maximumisshown)andbetweenthresholdandtargetforEPS(targetisshown).

(9) ThesePerformanceSharesarescheduledtovestonMarch4,2022subjecttoachievementofspecifiedfinancialperformancemetrics.PerformanceiscurrentlyforecastedtobeattargetforEPSandROIC(targetisshown),andabovetargetforTSR(maximumisshown).

(10) ThesePerformanceSharesarescheduledtovestonMarch10,2021subjecttoachievementofspecifiedfinancialperformancemetrics.PerformanceiscurrentlyforecastedtobeabovetargetforTSR(maximumisshown)andbetweenthresholdandtargetforEPS(targetisshown).

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Shares Vested in 2019

Stock Awards(1)

Executive Officer

Number of Time-Based

RSUs Acquired on Vesting (#)

Number ofPerformance

Shares Acquired on Vesting (#)

Value Realizedon

Vesting ($)

JonathanB.DeGaynor 37,530 62,967 $3,018,930

RobertR.Krakowiak 12,669 21,254 1,034,312

AnthonyL.Moore 9,171 15,386 699,875(1) ForMr.DeGaynor,thesharesarefromthe2016LTIPgrantthatvestedonMarch4,2019.ForMr.Krakowiak,theshares

arefromagrantreceivedathistimeofhirein2016whichvestedonAugust29,2019.ForMr.Moore,thesharesarefromagrantreceivedathistimeofhirein2016whichvestedonMay10,2019.

Non-Qualified Deferred Compensation PlanTheCompensationCommitteeapprovedimplementationofanon-qualifieddeferredcompensationplanforourexecutiveofficersandcertainotherleadersintheorganization,effectiveJune1,2017.Theplanprovidestheopportunitytodefercurrentcompensationandtaxesuntilafuturedate,andtoreceivetaxdeferredinvestmentreturnsondeferredamounts.TheCompanywillprovidematchingcontributionstotheextentthatparticipantsareunabletoreceiveafullmatchinthe401(k)plan,duetocontributionand/orcompensationlimits.Theplanallowseligibleemployeestodeferupto80%oftheirbasesalary,upto100%ofAIPandupto100%ofLTIP.Theminimumdeferralperiodisthreeyears.

Executive Officer

Executive contributionsin last FY ($)

Registrant contributionsin last FY ($)

Aggregate earnings in last

FY ($)

Aggregate balance at

last FYE ($)

LaurentP.Borne $3,380 — $237 $3,617

Potential Change in Control and Other Post-Employment PaymentsWehaveenteredintoaChangeinControlAgreement(the“CICAgreement”)withcertainexecutiveofficers.Thereisnoexcisetaxgross-uppaymentundertheCICAgreements.OurchangeincontrolagreementsweredesignedtoprovideforcontinuityofmanagementintheeventofchangeincontroloftheCompany.Wethinkitisimportantforourexecutivestobeabletoreactneutrallytoapotentialchangeincontrolandnotbeinfluencedbypersonalfinancialconcerns.Webelieveourarrangementsareconsistentwithmarketpractice.ForourNEOscoveredunderaCICAgreementwesetthelevelofbenefits,asdescribedbelow,toremaincompetitivewithourselectpeergroup.AllpaymentsundertheCICAgreementareconditionedonanon-compete,non-solicitationandnon-disparagementagreement.

WebelievethattheCICAgreementsshouldcompensateexecutivesdisplacedbyachangeincontrolandnotserveasanincentivetoincreasepersonalwealth.Therefore,ourCICAgreementsare“doubletrigger”arrangements.Inorderfortheexecutivestoreceivethepaymentsandbenefitssetforthintheagreement,bothofthefollowingmustoccur:

• achangeincontroloftheCompany;and

• atriggeringevent:

• theCompanyseparatesNEOfromservice,otherthaninthecaseofaterminationforcause,withintwoyearsofthechangeincontrol;or

• NEOseparatesfromserviceforgoodreason(definedasmaterialreductioninNEO’stitle,responsibilities,powerorauthority,orassignmentofdutiesthataremateriallyinconsistenttopreviousduties,ormaterialreductioninNEO’scompensationandbenefits)withintwoyearsofthechangeincontrol.

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InMarch2015,weenteredintoaCICAgreementwithMr.DeGaynoraspartofhisemploymentagreement.ThetermsofthisCICAgreementaresubstantiallysimilartothatdescribedabove.IftheeventslistedaboveoccurandtheexecutivedeliversareleasetotheCompany,wewillbeobligatedtoprovidethefollowingtoMr.DeGaynor:

• twotimesthegreaterofMr.DeGaynor’sannualbasesalaryatthetimeofatriggeringeventoratthetimeoftheoccurrenceofachangeincontrol;

• twotimesthegreaterofMr.DeGaynor’stargetannualincentiveawardatthetimeofterminationortheactualincentiveawardreceivedforthefiscalyearpriortotermination;

• anamountequaltotheprorataamountofannualincentivecompensationMr.DeGaynorwouldhavebeenentitledtoatthetimeofatriggeringeventcalculatedbasedonthepersonalandperformancegoalsthatwereachievedintheyearinwhichthetriggeringeventoccurred;and

• continuedlifeandhealthinsurancebenefitsfortwenty-fourmonthsfollowingtermination.

IftheeventslistedaboveoccurandtheexecutivedeliversareleasetotheCompany,wewillbeobligatedtoprovidethefollowingtoMr.Krakowiak,Mr.Dono,Mr.Borne,Mr.WilligandMr.Moore:

• twotimesthegreateroftheNEO’sannualbasesalaryatthetimeofatriggeringeventoratthetimeoftheoccurrenceofachangeincontrol;

• twotimesthegreateroftheNEO’saverageannualincentiveawardoverthelastthreecompletedfiscalyearsorthelastfivecompletedfiscalyears;

• anamountequaltotheprorataamountofannualincentivecompensationtheNEOwouldhavebeenentitledtoatthetimeofatriggeringeventcalculatedbasedontheperformancegoalsthatwereachievedintheyearinwhichthetriggeringeventoccurred;and

• continuedlifeandhealthinsurancebenefitsfortwenty-fourmonthsfollowingtermination.

UponachangeincontrolasdefinedbytheAmendedandRestatedLong-TermIncentivePlan(“2016LTIP”),time-basedRSUsandPerformanceSharesgrantedunderthatplanvestimmediatelyandarenolongersubjecttoforfeiture.Uponachangeincontrolasdefinedbythe2016LTIP,time-basedRSUsandPerformanceSharesgrantedunderthatplanremainsubjecttoforfeitureundertheoriginaltermsofthegrantunlessatriggeringevent,asdescribedabove,occurswithintwoyearsoftheeffectivedateofthechangeincontrol.

WehaveaSeverancePlan.TheNEOscoveredundertheSeverancePlanincludeMr.Krakowiak,Mr.Dono,Mr.Borne,Mr.Willig,andMr.Moore.Ifweterminateacoveredexecutivewithoutcause,wewillbeobligatedundertheSeverancePlantopaytheexecutive’ssalaryforoneyearandcontinuehealthandwelfarebenefitscoverageoverthesameperiodoftime.Mr.DeGaynor’sseveranceprotectionisprovidedinhisemploymentagreementasdescribedabove.NoseveranceispayableiftheNEO’semploymentisterminatedfor“cause,”iftheyresign,orupondeathordisability.

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Value of Payment Presuming Hypothetical December 31, 2019 Termination Date

Uponresignation,nopaymentsareduetoanyNEOinthetablebelow.AssumingtheeventsdescribedinthetablebelowoccurredonDecember31,2019,eachNEOwouldbeeligibleforthefollowingpaymentsandbenefits:

Termination Without

Cause

Change in Control and

NEO Resigns forGood Reason or

is Terminated Without Cause Disability Death

Jonathan B. DeGaynor BaseSalary $ 825,000 $ 1,650,000 $ 206,250 $ —AnnualIncentiveAward 850,000 1,700,000 — —UnvestedandAcceleratedRestrictedCommonSharesandShareUnits

1,756,796 2,962,229 2,962,229 2,962,229

UnvestedandAcceleratedPerformanceShares,RestrictedCommonShares

2,147,250 3,620,580 2,147,250 2,147,250

HealthandWelfareBenefits 36,654 73,308 — —

Total $5,615,700 $10,006,117 $5,315,729 $5,109,479

Robert R. Krakowiak BaseSalary $ 465,750 $ 931,500 $ — $ —AnnualIncentiveAward — 498,019 — —UnvestedandAcceleratedRestrictedCommonSharesandShareUnits

729,863 1,435,771 729,863 729,863


726,403 1,158,433 726,403 726,403

HealthandWelfareBenefits 33,829 67,658 — —280GReductionorExciseTax(1) (456,857)

Total $1,955,845 $ 3,634,525 $1,456,266 $1,456,266

Thomas M. Dono, Jr. BaseSalary $ 386,900 $ 773,800 $ — $ —AnnualIncentiveAward — 233,142 — —UnvestedandAcceleratedRestrictedCommonSharesandShareUnits

172,138 383,652 172,138 172,138


210,371 468,827 210,371 210,371

HealthandWelfareBenefits 32,581 65,162 — —280GReductionorExciseTax(1) (96,819)

Total $ 801,990 $ 1,827,764 $ 382,509 $ 382,509

Laurent P. Borne BaseSalary $ 338,000 $ 676,000 $ — $ —AnnualIncentiveAward — 94,371 — —UnvestedandAcceleratedRestrictedCommonSharesandShareUnits

195,359 411,653 195,359 195,359


154,751 377,055 154,751 154,751


Total $ 720,174 $ 1,623,206 $ 350,110 $ 350,110

Robert R. Willig, Jr. BaseSalary $ 338,000 $ 676,000 $ — $ —AnnualIncentiveAward — 141,297 — —UnvestedandAcceleratedRestrictedCommonSharesandShareUnits

148,389 323,781 148,389 148,389


181,198 395,439 181,198 181,198


Total $ 697,621 $ 1,596,585 $ 329,587 $ 329,587(1) CodeSection280Gprovidesguidelinesthatgovernpaymentstriggeredbyachangeincontrol,knownasparachute

payments.Ifsuchpaymentexceeds2.99timestheaverageannualcompensation(safeharborlimit)forcertainindividuals,thepaymentsmayresultinadversetaxconsequencesandexcisetaxes.TheCICAgreementsprovideifaparachutepaymentexceedsthesafeharborlimitby10%orless,thenthepaymentamountswillbereducedtothesafeharborlimit.

Iftheparachutepaymentexceedsthesafeharborlimitbymorethan10%,thenthepaymentisnotreducedandtheexecutivewill

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besubjecttoanexcisetaxof20%.Mr.Krakowiakwouldbesubjecttoanexcisetaxof$456,857asofDecember31,2019.Mr.Dono’sCICcompensationwouldbereducedby$96,819asofDecember31,2019toequaltheCodeSection280Gsafeharborlimit.NoreductionorexcisetaxwouldberequiredforMr.DeGaynor,Mr.BorneorMr.WilligasofDecember31,2019.

CEO Pay RatioIncompliancewithSection953(b)oftheDodd-FrankActandItem402(u)ofRegulationS-K,weundertookactivitiestocalculatetheratioofourCEO’stotalannualcompensationtothatofourmedianemployee.For2019,aspermitted,weusedtheemployeewhowasidentifiedin2017asourmedianpaidemployeeasthatindividualisstillemployedandtherehavebeennosignificantchangestoourglobalemployeepopulation.

Wecalculatedthe2019totalcompensationdataforboththeCEOandthemedianemployee.Ourmedianemployee’stotalannualcompensationin2019was$24,135.OurCEO’stotalannualcompensationin2019forpurposesofcalculatingtheCEOpayratiowas$3,303,164.TheratioofourCEO’stotalannualcompensationtothetotalannualcompensationofourmedianemployeewas137to1.

Director Compensation

Non-employeedirectorsarecompensatedfortheirservicesasdirectorsasshowninthechartbelow.

2019 Schedule of Director Fees

Cash Compensation AnnualRetainer-Director $ 80,000AnnualRetainer-Chairman 150,000AdditionalCompensation: AuditCommitteeChair 15,000CompensationCommitteeChair 10,000Nominating&CorporateGovernanceCommitteeChair 10,000Compliance&EthicsCommitteeChair 10,000

Equity Compensation Dateofgrantvalue 105,000

TheCompensationCommitteereviewsdirectorcompensationannuallyrelativetodataoftheCompany’sComparatorGroupprovidedbyTRS,itsindependentconsultant,andrecommendschangestothefullBoardforapproval,asappropriate.For2019,theCommitteerecommendedandtheBoardapprovedanannualChairpersonfeeof$10,000fortheCompliance&EthicsCommittee,anda$2,500increasetotheChairpersonfeesfortheNominating&CorporateGovernanceCommitteeandtheAuditCommittee.

PursuanttotheDirectors’RestrictedSharesPlan, non-employeedirectorsareeligibletoreceiveawardsofrestrictedcommonshares.OnMarch5,2019,eachdirectorwasgranted3,535restrictedcommonshares.TherestrictionsonthosecommonshareslapsedonMarch5,2020.

Director Compensation Table

Non-Employee DirectorFees Earned or

Paid in Cash

Stock Awards

($)(1)

Total Compensation

($)

JeffDraime $ 80,000 $105,000 $185,000DougJacobs 95,000 105,000 200,000IraKaplan 80,000 105,000 185,000KimKorth 90,000 105,000 195,000BillLasky 160,000 105,000 265,000GeorgeMayes,Jr. 90,000 105,000 195,000PaulSchlather 80,000 105,000 185,000(1) Theamountsincludedinthe“StockAwards”columnrepresentfairvalueatgrantdateofrestrictedcommonshareawards

todirectors,computedinaccordancewithFASBASCTopic718.Foradiscussionofthevaluationassumptions,seeNote7toourconsolidatedfinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2019.

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Director Share Ownership GuidelinesTheBoardhasestablishedshareownershipguidelinesforallnon-employeedirectors.TheseguidelinesprovidethateachdirectorshouldownCompanycommonsharesequalinmarketvaluetofourtimesthecashportionoftheBoard’sannualretainer.TheDirectorshaveafiveyearaccumulationperiodfromimplementationoftheguidelineorappointmenttotheBoardtoachievecomplianceandarerestrictedfromsellinganycommonsharesearnedunderaCompanyequity-basedcompensationplanuntiltheirownershipguidelinehasbeenreached.

Maximum Annual Director Compensation PolicyTheDirectors’RestrictedSharesPlanhasacurrentmaximumannuallimitforequitygrantstoanynon-employeedirectorof10,000shares.

TheBoardhasadoptedanannuallimitfortotalcompensationpaidtoanon-employeedirectorof$350,000in2020.

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PROPOSAL FOUR: APPROVAL OF AN AMENDMENT TO 2016 LONG-TERM INCENTIVE PLAN TOINCREASE BY 1,100,000 THE NUMBER OF COMMON SHARES AUTHORIZED FOR ISSUANCEThe2016Long-TermIncentivePlan(“2016LTIP”)was,upontheapprovalandrecommendationoftheBoardofDirectors,inaccordancewithapplicablelawandlistingrulesoftheNYSE,approvedbytheCompany’sshareholdersatthe2016AnnualMeetingofShareholders.OnMarch10,2020,theBoardofDirectorsapprovedanamendment(subjecttoshareholderapproval)tothe2016LTIPtoincreasebyanadditional1,100,000commonsharesthenumberofcommonsharesavailableforissuance.

Description of AmendmentTheamendmenttothe2016LTIPwillincreasethenumberofcommonsharesavailableforissuanceby1,100,000tobringthetotalcommonsharesavailableforissuanceto2,900,000.

TheCompanyisseekingshareholderapprovaloftheamendmenttothe2016LTIPbecauseadditionalsharesavailableforissuanceundertheitwillassisttheCompanyinachievingitsgoalofpromotinglong-termgrowthandprofitabilitybyenablingtheCompanytoattract,retainandrewardkeyemployeesand,therefore,aligntheinterestsofthoseemployeeswiththoseoftheCompany’sshareholders.Withouttheadditionalsharesforthe2016LTIP,theCompanywouldnothavetheabilitytomakeequity-basedawardstoitskeyemployeesandwouldbegreatlydisadvantagedinattractingandretainingkeyemployees.Asdescribedunderthesectionheading“ExecutiveCompensation,”theCompanyhasmadeannualgrantsofequity-basedawardsunderthe2016LTIP.

Byaligningcompensationwithperformance,theCompanybelievesthattheuseofshare-basedbenefitsaspartoftheCompany’scompensationpackageisofgreatimportanceinpromotingtheCompany’sgrowthandcontinuedsuccessandisthusasubstantialbenefittotheCompany’sshareholdersandtheCompany.Thedescriptionofthe2016LTIP,asamended,issubjecttoandqualifiedby(i)AppendixAtothisProxyStatement(whichcontainsacopyofthe2016LTIPamendmentthatincreasesthenumberofcommonsharesauthorizedforissuance)and(ii)acopyofthe2016LTIP(priortotheamendment),whichisavailableatwww.sec.govasanappendixtoourProxyStatementdatedandfiledwiththeSEConApril8,2016andisalsoavailableasExhibit4.3toourFormS-8RegistrationStatementfiledwiththeSEConAugust3,2016.Thesefilesarealsoavailableonourwebsiteatwww.stoneridge.com (see“Investors”,“SECFilings”).

Underthe2016LTIPplan,1,800,000commonshareswerereservedforissuancepursuanttograntsorawards.Attheendof2019,grantsfor1,200,753commonshareshadbeenmade,180,437ofthosecommonshareshavebeenforfeitedandthereforeagainavailableforgrantsunderthe2016LTIP.InMarch2020,grantsfor653,407commonsharesweremadeand,inthefirstquarterof2020throughMarch20,2020,27,035commonshareswereforfeited,leavingatotalof153,312commonsharesavailableforissuanceasgrantsunderthe2016LTIP.Theproposedamendmentwouldadd1,100,000tothenumberofcommonsharesavailableforissuanceunderthe2016LTIP.

Summaryofthe2016Long-TermIncentivePlan:

• ThepurposeoftheLTIPistopromotetheCompany’slong-termgrowthandprofitabilitybyenablingtheCompanytoattract,retainandrewardkeyemployeesandofficersandtostrengthenthecommoninterestsofsuchemployeesandofficersandtheCompany’sshareholdersbyofferingkeyemployeesandofficersequityorequity-basedincentives.KeyemployeesandofficersoftheCompanyanditssubsidiariesoraffiliateswillbeeligibletoparticipateintheLTIP.AsofMarch31,2020,approximately45keyemployeesandofficerswereeligibletoparticipateintheLTIP.

• TheCompensationCommitteeadministerstheLTIPanddetermineswhoreceivesawards,thetypeandamountofawards,theconsideration,ifany,tobepaidforawards,thetimingofawardsandthetermsandconditionsofawards.UndertheLTIP,theCompensationCommitteemaydelegateitsresponsibilitiesastotheselectionofandgrantofawardstoemployeeswhoarenotexecutiveofficersoftheCompanyor,subjecttoSection16oftheExchangeAct,tothe

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Company’smanagementinamannerconsistentwithapplicablelaw.TheCompensationCommitteewillhavetheauthoritytoadopt,alterandrepealsuchrules,guidelinesandpracticesgoverningtheLTIPasitconsidersadvisableandtointerpretthetermsandprovisionsoftheLTIPandanyawardissuedundertheLTIP.

• TheCompensationCommitteemaygrantstockoptionsthat(i)qualifyasincentivestockoptionsunderSection422AoftheInternalRevenueCodeof1986,(ii)donotqualifyasincentivestockoptions,or(iii)both.Toqualifyasanincentivestockoption,anoptionmustmeetcertainrequirementssetforthintheInternalRevenueCode.UndertheLTIPthemaximumnumberofcommonshareswhichmaybeissuedsubjecttoincentivestockoptionsis250,000.OptionsareevidencedbyastockoptionagreementintheformapprovedbytheCompensationCommittee.

• Inaddition,theCompensationCommitteemaymakegrantsofrestrictedshares,restrictedshareunits,deferredshares,sharepurchaserights,shareappreciationrightsintandemwithstockoptions,performanceshares,performanceshareunits,shareunits,othershare-basedawardsoranycombinationthereof.

• Stockoptionswillbeexercisableandgrantsofrestrictedshares,restrictedshareunits,performanceunitsorperformanceshares,etc.willvestatsuchtimeortimesastheCompensationCommitteedeterminesatthetimeofgrant.Ingeneral,restrictedsharesarenon-transferablepriortovesting.Additionally,ifanystockoptionorgrantofrestrictedsharesorrestrictedshareunitsisexercisableorbecomesvestedonlyininstallmentsorafterspecifiedexercisedates,theCompensationCommitteemaywaivesuchexerciseprovisionsandaccelerateanyexercisedatebasedonsuchfactorsastheCompensationCommitteeshalldetermineinitssolediscretion.NoconsiderationwillbereceivedbytheCompanyforthegrantingofawardsundertheLTIP.

• TheexercisepriceofastockoptiongrantedundertheLTIPmaynotbelessthan100%ofthefairmarketvalueoftheCompany’scommonsharesonthedatethestockoptionisgranted,exceptthatwithrespecttoanincentivestockoption,theexercisepricemaynotbelessthan110%ofthefairmarketvalueoftheCompany’scommonsharesonthedateofgrantforparticipantswho,onthedateofgrant,ownmorethan10%ofthetotalcombinedvotingpowerofallclassesofsharesoftheCompanyoritsparentorsubsidiaries.

• ThetermofeachstockoptionwillbefixedbytheCompensationCommitteeandmaynotexceedtenyearsfromthedatethestockoptionisgranted,exceptthatthetermforincentivestockoptionsmaynotexceedfiveyearsforparticipantswho,onthedateofgrant,ownmorethan10%ofthetotalcombinedvotingpowerofallclassesofsharesoftheCompanyoritsparentorsubsidiaries.

• NoparticipantintheLTIPmaybegrantedstockoptions,shareappreciationrightsorotherawards,includinganyperformanceshares,inanycalendaryearformorethan400,000commonshares.

• Intheeventofanydividend(otherthanaregularcashdividend)orotherdistribution(whetherintheformofcash,shares,othersecurities,orotherproperty),recapitalization,reclassification,stocksplit,reversestocksplit,reorganization,merger,consolidation,acquisition,split-up,spinoff,combination,repurchase,liquidation,dissolution,orsale,transfer,exchangeorotherdispositionofallorsubstantiallyalloftheassetsoftheCompany,orexchangeofsharesorothersecuritiesoftheCompany,issuanceofwarrantsorotherrightstopurchasesharesorothersecuritiesoftheCompany,orothersimilarcorporatetransactionorevent,andsucheventaffectssharessuchthattheCommitteedeterminesanadjustmentisappropriatetopreventdilutionorenlargementofthebenefitsorpotentialbenefitsintendedtobemadeavailableundertheLTIP,theCommitteemayadjust(i)thenumberofshareswithrespecttowhichawardsmaybegrantedorawarded,(ii)thenumberofsharessubjecttooutstandingawards,(iii)thegrantorexercisepricewithrespecttoanyaward,and(iv)theapplicablelimitationsforgrantstoaparticipant.

• TheLTIPwillnotbequalifiedunderSection401(a)oftheInternalRevenueCodeandwillnotbesubjecttotheprovisionsoftheEmployeeRetirementIncomeSecurityActof1974.

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• TheLTIPisintendedtocomplywithSection409AoftheInternalRevenueCode.Ifitisdeterminedthatanyamounttobepaidtoa“specifiedemployee”(assuchtermisdefinedinSection409AoftheInternalRevenueCode)undertheLTIPisconsidered“nonqualifieddeferredcompensation”subjecttoSection409AoftheInternalRevenueCode,thensuchpaymentifmadeupon“separationfromservice”,asdefinedinSection409AoftheInternalRevenueCode,shallbedelayedforsixmonthsandonedayfollowingthespecifiedemployee’sseparationfromservice.

• TheBoardofDirectorsmayamend,alterordiscontinuetheLTIPaslongasitdoesnotimpairtherightsthereunderofanyparticipant.TheBoardofDirectorsmustsubmittotheCompany’sshareholdersforapprovalanyamendmentstotheLTIPwhichrequireshareholderapprovalunderSection16oftheExchangeActortherulesandregulationsthereunderorNYSElistingstandards.

• Intheeventthereisachangeincontrol(asdefinedintheLTIP)andagrantee’sterminationofservicewithintwoyearsofachangeincontrol,then(i)anystockoptionsawardedundertheLTIPnotpreviouslyexercisableandvestedshallbecomefullyexercisableandvestedupontheterminationoftheemploymentoftheparticipantbytheCompanyotherthanforcauseorbytheparticipantforgoodreason;(ii)anyshareappreciationrightsshallbecomeimmediatelyexercisableupontheterminationofemploymentoftheparticipantbytheCompanyotherthanforcauseorbytheparticipantforgoodreason;(iii)therestrictionsapplicabletoanyrestrictedsharesorrestrictedshareunits,performancesharesorperformanceshareunits,deferredshares,sharepurchaserightsandothershare-basedawardsshalllapseandsuchsharesandawardsshallbedeemedfullyvestedupontheterminationofemploymentoftheparticipantbytheCompanyotherthanforcauseorbytheparticipantforgoodreason(providedthatanyawardsubjecttoSection409AoftheInternalRevenueCodeshallbesettledinaccordancewiththetermsofthegrantandwithoutregardtothechangeofcontrolunlessthechangeincontrolalsoconstitutesa“changeincontrolevent”withinthemeaningofSection409AoftheInternalRevenueCodeandsuchterminationofemploymentoccurswithintwoyears);and(iv)unlessotherwisedeterminedbytheCommittee,thepayoutofperformancesharesandperformanceshareunitsshallbedeterminedexclusivelybytheattainmentoftheperformancegoalsestablishedbytheCommittee,whichmaynotbemodifiedafterthechangeincontrol,andtheCompanyshallnothavetherighttoreducetheawardsafterthechangeincontrolforanyotherreason.

• PerformanceobjectivesestablishedbytheCommitteemaybebasedononeormoreofthefollowingcriteriaapplicabletotheCompany,oneormoreofitssubsidiaries,units,divisionsortheparticipant:increaseinnetsales,pretaxincomebeforeallocationofcorporateoverheadandbonus;operatingprofit;networkingcapital;earningspershare;netincome;revenuegrowth;attainmentofdivision,grouporcorporatefinancialgoals;returnonshareholders’equity;returnonassets;otherreturnmeasures(including,butnotlimitedto,returnoncapital,investedcapital,oraverageequity);cashflow(including,butnotlimitedto,operatingcashflow,freecashflow,cashgeneration,cashflowreturnonequity,andcashflowreturnoninvestment);capitalandliquidityratios;attainmentofstrategicandoperationalinitiatives;attainmentofoneormorespecificandmeasurableindividualstrategicgoals;appreciationinormaintenanceofthepriceoftheCompany’scommonshares;increaseinmarketshare;grossprofits;totalreturntoshareholders;earningsbeforeinterestandtaxes;earningsbeforeinterest,taxes,depreciationandamortization;comparisonswithvariousstockmarketindicesorpeerperformance;achievementofsafety,successionplanning,sustainability,sharepriceortalentdevelopmentobjectivesorreductionsinlaborormaterialcosts.

• SeeExecutiveCompensationonpage17,includingCompensationDiscussionandAnalysis(page17),SummaryCompensationTable(page29)andGrantsofPlan-BasedAwards(page30)forinformationaboutawardsmadeunderthe2016LTIPtotheCompany’sNamedExecutiveOfficers.

• OnMarch20,2020,theclosingpriceofcommonsharesoftheCompanyontheNewYorkStockExchangewas$15.69.

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Federal Income Tax ConsequencesThefollowingsummaryofthefederalincometaxconsequencesapplicabletooptionsawardedunderthe2016LTIPisonlyageneralsummaryoftheapplicableprovisionsoftheInternalRevenueCodeandregulationspromulgatedthereunderasineffectonthedateofthisproxystatement.Theactualfederal,state,localandforeigntaxconsequencestotheparticipantmayvarydependinguponhisorherparticularcircumstances.

Incentive Stock OptionsAnincentivestockoptionresultsinnotaxableincometotheparticipantoradeductiontotheCompanyatthetimeitisgrantedorexercised.However,theexcessofthefairmarketvalueofthesharesacquiredovertheoptionpriceisanitemofadjustmentincomputingthealternativeminimumtaxableincomeoftheparticipant.Iftheparticipantholdsthesharesreceivedasaresultofanexerciseofanincentivestockoptionforatleasttwoyearsfromthedateofthegrantandoneyearfromthedateofexercise,thenthegainrealizedondispositionoftheshares(generallytheamountreceivedinexcessoftheoptionprice)istreatedasalong-termcapitalgain.Ifthesharesaredisposedofduringthisperiod,however(i.e.,a“disqualifyingdisposition”),thentheparticipantwillincludeinincome,ascompensationfortheyearofthedisposition,anamountequaltotheexcess,ifany,ofthefairmarketvalueofthesharesonthedateofexerciseoftheoptionovertheoptionprice(or,ifless,theexcessoftheamountrealizedupondispositionovertheoptionprice).Theexcess,ifany,ofthesalepriceoverthefairmarketvalueonthedateofexercisewillbeeitheralong-termorashort-termcapitalgaindependingonwhethertheparticipanthasheldthesharesformorethanoneyear.Insuchcase,theCompanywillbeentitledtoadeduction,intheyearofsuchadisposition,fortheamountincludibleintheparticipant’sincomeascompensation.Theparticipant’sbasisinthesharesacquireduponexerciseofanincentivestockoptionisequaltotheoptionpricepaid,plusanyamountincludibleinhisorherincomeasaresultofadisqualifyingdisposition.

Ifanincentivestockoptionisexercisedbytenderingpreviouslyownedcommonshares,thefollowinggenerallywillapply:anumberofnewsharesequaltothenumberofpreviouslyownedcommonsharestenderedwillbeconsideredtohavebeenreceivedinatax-freeexchange;theparticipant’sbasisandholdingperiod(exceptforthedisqualifyingdispositionperiod)forsuchnumberofnewcommonshareswillbeequaltothebasisandholdingperiodofthepreviouslyownedcommonsharesexchanged.Totheextentthatthenumberofcommonsharesreceivedexceedsthenumberofcommonsharessurrendered,notaxableincomewillberealizedbytheparticipantatthattime;suchexcesscommonshareswillbeconsideredincentivestockoptionstockwithazerobasis;andtheholdingperiodoftheparticipantinsuchcommonshareswillbeginonthedatesuchcommonsharesaretransferredtotheparticipant.Ifthecommonsharessurrenderedwereacquiredastheresultoftheexerciseofanincentivestockoptionandthesurrendertakesplacewithintwoyearsfromthedatetheincentivestockoptionrelatingtothesurrenderedcommonshareswasgrantedorwithinoneyearfromthedateofsuchexercise,thesurrenderwillresultinadisqualifyingdispositionandtheparticipantwillrealizeordinaryincomeatthattimeintheamountoftheexcess,ifany,ofthefairmarketvalueatthetimeofexerciseofthecommonsharessurrenderedoverthebasisofsuchcommonshares.Ifanyofthecommonsharesreceivedaredisposedofinadisqualifyingdisposition,theparticipantwillbetreatedasfirstdisposingofthecommonshareswithazerobasis.

Non-qualified Stock OptionsProvidedthattheexercisepriceisnotlessthanthemarketvalueofashareatgrant,anon-qualifiedstockoptionresultsinnotaxableincometotheparticipantordeductiontotheCompanyatthetimeitisgranted.Aparticipantexercisingsuchanoptionwill,atthattime,realizetaxablecompensationintheamountofthedifferencebetweentheoptionpriceandthethenmarketvalueoftheshares.SubjecttotheapplicableprovisionsoftheInternalRevenueCode,theCompanywillbeallowedadeductionforfederalincometaxpurposesintheyearofexerciseinanamountequaltothetaxablecompensationrecognizedbytheparticipant.

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Theparticipant’sbasisinsuchcommonsharesisequaltothesumoftheoptionpriceplustheamountincludibleinhisorherincomeascompensationuponexercise.Anygain(orloss)uponsubsequentdispositionofthecommonshareswillbealong-termorshort-termgain(orloss),dependingupontheholdingperiodofthecommonshares.Theholdingperiodforsharesreceivedupontheexerciseofanoptionbeginsonthedateofexerciseoftheoption.

Ifanon-qualifiedoptionisexercisedbytenderingpreviouslyownedcommonshares,thefollowinggenerallywillapply:anumberofnewcommonsharesequaltothenumberofpreviouslyownedsharestenderedwillbeconsideredtohavebeenreceivedinatax-freeexchange;theparticipant’sbasisandholdingperiodforsuchnumberofnewcommonshareswillbeequaltothebasisandholdingperiodofthepreviouslyownedcommonsharesexchanged.Theparticipantwillhavecompensationincomeequaltothefairmarketvalueonthedateofexerciseofthenumberofnewcommonsharesreceivedinexcessofsuchnumberofexchangedcommonshares;theparticipant’sbasisinsuchexcesscommonshareswillbeequaltotheamountofsuchcompensationincome;andtheholdingperiodinsuchcommonshareswillbeginonthedateofexercise.

Restricted SharesAparticipantwillnotrecognizeanytaxableincomeuponthegrantofrestrictedsharesunlesstheparticipantmakesavoluntaryelectiontorecognizeincomeatgrantunderSection83(b)oftheInternalRevenueCode.IfaparticipantdidnotmakeanelectionunderSection83(b)oftheInternalRevenueCode,thenupontheexpirationofarestrictionperiodforrestrictedshares,whethersuchperiodlapsesduetothesatisfactionofcertainpre-establishedperformancecriteriaorduesolelytothelapseoftime,theparticipantwillrecognizecompensationincomeandtheCompanywillbeentitledtoadeductionequaltothevalueofthesharesthattheparticipantreceives.

Vote Required for ApprovalTheaffirmativevoteofamajorityofthevotescastinpersonorbyproxybyshareholdersrepresentedandentitledtovoteattheAnnualMeetingisrequiredforapprovaloftheamendmenttothe2016LTIP.Brokernon-voteswillnotbetreatedasvotescastandwillnothaveapositiveornegativeeffectontheoutcomeoftheproposal.Abstentionswillbetreatedasvotescastand,consequently,willhavethesameeffectasvotesagainsttheproposal.

The Board of Directors recommends that you vote FOR Proposal Four.

OTHER INFORMATION

Shareholder’s Proposals for 2021 Annual Meeting of Shareholders

Matters for Inclusion in the Proxy Materials for the 2021 Annual Meeting of Shareholders

Proposalsofshareholdersintendedtobepresented,pursuanttoRule14a-8undertheExchangeAct,atour2021AnnualMeetingofShareholdersmustbereceivedbyStoneridge,Inc.,39675MacKenzieDrive,Suite400,Novi,Michigan48377,onorbeforethecloseofbusinessonDecember3,2020,forinclusioninourproxystatementandformofproxyrelatingtothe2020AnnualMeetingofShareholders

Matters for Consideration at the 2021 Annual Meeting of Shareholders, but not for Inclusion in the ProxyMaterials

Mattersforconsiderationatthe2021AnnualMeetingofShareholders,butnotforinclusionintheproxymaterials,mustbereceivedbyStoneridge,Inc.,39675MacKenzieDrive,Suite400,Novi,Michigan48377nolaterthanthecloseofbusinessonFebruary16,2021.

Delinquent Section 16(a) ReportsSection16(a)oftheExchangeActrequiresourofficersanddirectorsandholdersofmorethan10%ofourcommonsharestofilewiththeSECinitialreportsofownershipandreportsofchangesinownershipofourcommonshares.SuchpersonsarerequiredbyregulationsoftheSECtofurnishuswithcopiesofallsuchfilings.Asamatterofpractice,ourstaffandlegaladvisorsassistsourofficersanddirectorsin

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preparinginitialreportsofownershipandreportsofchangesinownershipandfilesthosereportsontheirbehalf.Basedonourreviewofthecopiesofsuchformswehavereceived,aswellasinformationprovidedandrepresentationsmadebythereportingpersons,webelievethatallrequiredSection16(a)filingrequirementsweremetwithrespecttotheyearendedDecember31,2019.

Other MattersIftheenclosedproxyisexecutedandreturnedtousviamail,telephoneorInternet,thepersonsnamedinitwillvotethecommonsharesrepresentedbythatproxyatthemeeting.Theformofproxypermitsspecificationofavotefortheelectionofdirectorsassetforthunder“ElectionofDirectors,”thewithholdingofauthoritytovoteintheelectionofdirectors,orthewithholdingofauthoritytovoteforoneormorespecifiednominees.Whenachoicehasbeenspecifiedintheproxy,thecommonsharesrepresentedwillbevotedinaccordancewiththatspecification.Ifnospecificationismade,thosecommonshareswillbevotedatthemeetingtoelectdirectorsassetforthunder“ElectionofDirectors”,FORtheproposalsto(i)ratifytheappointmentofErnst&YoungasourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2020;(ii)approveoftheadvisoryresolutiononexecutivecompensation,and(iii)theamendmenttothe2016LTIPincreasingthenumberofcommonsharesauthorizedforissuance.

Theholdersofsharesofamajorityofthecommonsharesoutstandingontherecorddate,presentinpersonorbyproxy,shallconstituteaquorumforthetransactionofbusinesstobeconsideredattheAnnualMeetingofShareholders.

Ifanyothermatterproperlycomesbeforethemeeting,thepersonsnamedintheproxywillvotethereoninaccordancewiththeirjudgment.Wedonotknowofanyothermatterthatmaybepresentedforactionatthemeetingandwehavenotreceivedanytimelynoticethatanyofourshareholdersintendtopresentaproposalatthemeeting.

ByorderoftheBoardofDirectors,

ThomasM.Dono,Jr.

Dated:April2,2020 Chief Legal Officer and Secretary

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Appendix A

FIRST AMENDMENT TO THE

STONERIDGE, INC. 2016 LONG-TERM INCENTIVE PLAN

ThisFirstAmendmenttotheStoneridge,Inc.2016Long-TermIncentivePlan(the“Amendment”),ismadeasofMarch10,2020bytheBoardofDirectors(the“Board”)ofStoneridge,Inc.,anOhiocorporation(the“Company”).TheAmendmentwillbeeffectiveforallAwardsgrantedundertheStoneridge,Inc.2016Long-TermIncentivePlan(the“LTIP”),onlyaftertheeffectivedateofthisAmendmentasdescribedherein.

WHEREAS,thecurrentLTIP,aspreviouslyapprovedbytheCompany’sBoardofDirectorsandtheCompany’sshareholders,authorizestheissuanceof1,800,000CompanyCommonSharesundertheLTIP;

WHEREAS,itisthedesireoftheCompanytoamendtheLTIP,effectiveasofthedateonwhichtheCompany’sshareholdersapprovethisAmendment,toincreasethemaximumnumberofCommonSharesthatmaybeissuedandavailableforAwardsundertheLTIP;and

WHEREAS,theBoardapprovedtheAmendmentonMarch10,2020,subjecttoapprovalbytheCompany’sshareholders.

NOW,THEREFORE,effectiveasofthedateonwhichthisAmendmentisapprovedbytheCompany’sshareholders,theLTIPisamendedasfollows:

1. AmendmenttoSection3(a)oftheLTIP.

Section3(a)oftheLTIPisherebyamendedandrestatedinitsentiretyasfollows:

“Aggregate Shares Subject to the Plan.SubjecttoadjustmentasprovidedinSection3(c),thetotalnumberofSharesreservedandavailableforAwardsunderthePlanis2,900,000,pursuanttowhichthemaximumnumberofShareswhichmaybeissuedsubjecttoIncentiveStockOptionsis250,000.AnySharesissuedhereundermayconsist,inwholeorinpart,ofauthorizedandunissuedsharesortreasuryshares.”

2. AmendmenttoSection18oftheLTIP.

Section18oftheLTIPisherebyamendedandrestatedinitsentiretyasfollows:

This2016Long-TermIncentivePlanwasadoptedbytheBoardofDirectorsonMarch28,2016andapprovedtheCompany’sshareholdersonMay10,2016inaccordancewithapplicablelawandthelistingstandardsoftheNewYorkStockExchange.OnMarch10,2020,theBoardofDirectorsapprovedanamendmenttothe2016Long-TermIncentivePlantoincreasethenumberofSharesavailableforissuanceandAwardsthereunderby1,100,000Sharesbringingthetotalto2,900,000Shares.TheMarch10,2020amendmentissubjecttotheapprovalbytheholdersoftheCompany’soutstandingShares,inaccordancewithapplicablelawandthelistingstandardsoftheNewYorkStockExchange.This2016Long-TermIncentivePlan,asamended,willbecomeeffectiveonthedateofsuchshareholderapproval.”

3. Miscellaneous.

(a) ExceptasamendedbythisAmendment,theLTIPshallremaininfullforceandeffect.

(b) CapitalizedtermsusedbutnotdefinedinthisAmendmenthavetherespectivemeaningsascribedtheretointheLTIP.

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