TABLE OF CONTENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001745041/c8ab0339-35... · 2020. 4. 23. ·...

TABLE OF CONTENTS

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14AProxyStatementPursuanttoSection14(a)of

theSecuritiesExchangeActof1934(AmendmentNo. )

FiledbytheRegistrant☒

FiledbyaPartyotherthantheRegistrant ☐

Checktheappropriatebox:

☐ PreliminaryProxyStatement

☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

☒ DefinitiveProxyStatement

☐ DefinitiveAdditionalMaterials

☐ SolicitingMaterialunder§240.14a-12

IAA, INC.(NameofRegistrantasSpecifiedInItsCharter)

(NameofPerson(s)FilingProxyStatement,ifotherthantheRegistrant)

PaymentofFilingFee(Checktheappropriatebox):

☒ Nofeerequired.

☐ FeecomputedontablebelowperExchangeActRules14a-6(i)(1)and0-11.

(1) Titleofeachclassofsecuritiestowhichtransactionapplies:

(2) Aggregatenumberofsecuritiestowhichtransactionapplies:

(3) PerunitpriceorotherunderlyingvalueoftransactioncomputedpursuanttoExchangeActRule0-11(setforththeamountonwhichthefilingfeeiscalculatedandstatehowitwasdetermined):

(4) Proposedmaximumaggregatevalueoftransaction:

(5) Totalfeepaid:

☐ Feepaidpreviouslywithpreliminarymaterials.

☐ CheckboxifanypartofthefeeisoffsetasprovidedbyExchangeActRule0-11(a)(2)andidentifythefilingforwhichtheoffsettingfeewaspaidpreviously.Identifythepreviousfilingbyregistrationstatementnumber,ortheFormorScheduleandthedateofitsfiling.

(1) AmountPreviouslyPaid:

(2) Form,ScheduleorRegistrationStatementNo.:

(3) FilingParty:

(4) DateFiled:

TABLE OF CONTENTS

IAA, INC.

Notice of Annual Meeting and Proxy Statement Annual Meeting of Stockholders June 17, 2020

TABLE OF CONTENTS

April23,2020

DearFellowStockholder:

ItisalmostoneyearsinceIAAwasspunofffromKARAuctionServices,andIammoreconvincednowastheChairmanofIAAandastheformerLeadIndependentDirectoratKAR,thatthespinoffwastherightmoveforourshareholders.ThespinoffhasallowedIAAtheflexibilitytofocusonitsstrategyandseizeuponopportunitiesaimedatdrivingshareholdervalue.Iampleasedtoreportthatwehadasuccessful2019,duringwhichwegrewourrevenuesandadjustedEBITDA,andgeneratedasignificantamountofnetcashfromouroperatingactivities.

OurBoardandtheentiremanagementteamareenergizedandalignedinexecutingonourgrowthstrategy,whichincludes,amongotherobjectives,enhancingexistingcustomerrelationshipsandexpandingmarketshare;improvingourmarginsbydeployinginnovativeprocessesandtechnologytoshortencycletimesandreducecosts;enhancingourinternationalbuyernetwork;andexpandinginternationallyinattractivemarkets.

AlthoughCOVID-19hasinjectedasignificantdegreeofuncertaintyintotheoveralleconomyandourbusinesssectorfor2020,weremainfocusedonexecutingonourgrowthstrategiesandmarginexpansionplans.Webelievethatthelong-termfundamentalsofourbusinesscontinuetobestrongandarecommittedtoadisciplinedcapitalallocationstrategy,whichwillallowustodeliveronourstrategiesanddriveshareholdervalue.

Aswenearourone-yearanniversaryfromthespin-off,wewouldliketoinviteyoutoattendIAA’sfirstannualmeetingofshareholders,whichwillbeheldvirtually.Holdingthemeetingvirtuallynotonlyexpandsaccesstothemeetingandgeneratessavingsforourcompanyandshareholders,butitalsoassistsusinoureffortstoprotectthehealthandsafetyofallourstakeholders-especiallyinlightofCOVID-19.Duringthispandemic,thehealthandsafetyofouremployees,directorsandofficers,customersandthecommunitiesweserve,remainsourhighestpriority.

Evenwithavirtualmeeting,asanIAAshareholder,yourvotemattersandwestronglyencourageyoutovoteyoursharesinadvanceofthemeeting.Thematterstobeactedupon,andadescriptionofthevotingmethods,areprovidedwithinthisproxystatement.

ThankyouagainforyourcontinuedsupportandconfidenceinIAAandthestrategyandvisionforthefutureledbyourmanagementteamandBoardofDirectors.

Sincerely,

JohnP.Larson

ChairmanoftheBoard

TABLE OF CONTENTS

Two Westbrook Corporate Center, Suite 500 Westchester, Illinois 60154

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

DateandTime: 9:00a.m.,EasternDaylightTime,onJune17,2020

Place: Onlineatwww.virtualshareholdermeeting.com/IAA2020

Admission: Toattendthe2020annualmeeting,visitwww.virtualshareholdermeeting.com/IAA2020.Youwillneedthe16-digitcontrolnumberincludedonyourNoticeofInternetAvailabilityofProxyMaterials,oronyourproxycardorvotinginstructionformthataccompaniedyourproxymaterials.

ItemsofBusiness: Proposal No. 1: ToelecteachofthethreeClassIdirectornomineestotheBoardofDirectorstoserveuntilour2023annualmeetingofstockholdersanduntiltheirrespectivesuccessorsareelectedandqualified. Proposal No. 2: Toapprove,onanadvisorybasis,thecompensationofournamedexecutiveofficers. Proposal No. 3: Toapprove,onanadvisorybasis,thefrequencyoffutureadvisoryvotesonnamedexecutiveofficercompensation. Proposal No. 4: ToratifytheappointmentofKPMGLLPasourindependentregisteredpublicaccountingfirmforthefiscalyearendingDecember27,2020. Totransactanyotherbusinessasmayproperlycomebeforethemeetingoranyadjournmentsorpostponementsthereof.

RecordDate: Youareentitledtonoticeofandtovoteatthe2020annualmeetingifyouwereastockholderofrecordatthecloseofbusinessonApril20,2020.

VotingbyProxy: Whetherornotyouplantovirtuallyattendthe2020annualmeeting,pleasevoteatyourearliestconveniencebyfollowingtheinstructionsintheNoticeofInternetAvailabilityofProxyMaterialsortheproxycardorvotinginstructionformthataccompaniedyourproxymaterialssothatyoursharescanbevotedatthe2020annualmeetinginaccordancewithyourinstructions.

OnBehalfoftheBoardofDirectors,

April23,2020Westchester,Illinois

J.SidneyPeryarExecutive Vice President,Chief Legal Officer & Secretary

PROXY STATEMENT SUMMARY 1

ANNUALMEETINGOFSTOCKHOLDERS 1

ITEMSTOBEVOTEDONATANNUALMEETINGOFSTOCKHOLDERS 1

BOARDNOMINEES 2

2019BUSINESSHIGHLIGHTS 3

CORPORATEGOVERNANCEHIGHLIGHTS 4

EXECUTIVECOMPENSATION 5

PROPOSAL NO. 1: ELECTION OF DIRECTORS 6

GENERAL 6

DIRECTORSELECTEDANNUALLY 0

DIRECTORINDEPENDENCE 6

BOARDCOMPOSITION 7

INFORMATIONREGARDINGDIRECTORSANDDIRECTORNOMINEES 8

VOTESTANDARD 8

BOARD OF DIRECTORS STRUCTURE AND CORPORATEGOVERNANCE 14

ROLEOFTHEBOARDOFDIRECTORS 14

BOARDLEADERSHIPSTRUCTURE 14

BOARDOFDIRECTORSMEETINGSANDATTENDANCE 14

COMMITTEESOFTHEBOARDOFDIRECTORS 15

BOARDOFDIRECTORS’RISKOVERSIGHT 17

CORPORATEGOVERNANCEDOCUMENTS 18

SELECTIONOFNEWDIRECTORS;STOCKHOLDERRECOMMENDEDDIRECTORCANDIDATES 18

BOARDQUALIFICATIONSANDDIVERSITY 19

BOARDEVALUATIONPROCESS 19

SUCCESSIONPLANNING 19

STOCKHOLDERCOMMUNICATIONSWITHTHEBOARD 19

EXECUTIVESESSIONS 20

CORPORATE RESPONSIBILITY AND ENVIRONMENTALSUSTAINABILITY 21

EXECUTIVE OFFICERS 23

DIRECTOR COMPENSATION 25

CASHANDSTOCKRETAINERS 25

DIRECTORSDEFERREDCOMPENSATIONPLAN 26

DIRECTORSTOCKOWNERSHIPANDHOLDINGGUIDELINES 26

DIRECTORCOMPENSATIONPAIDIN2019. 26

OUTSTANDINGDIRECTORRESTRICTEDSTOCKAWARDS 27

BENEFICIAL OWNERSHIP OF THE COMPANY’S COMMONSTOCK 28

PROPOSAL NO. 2: ADVISORY VOTE TO APPROVE NAMEDEXECUTIVE OFFICER COMPENSATION 29

GENERAL 29

VOTESTANDARD 29

COMPENSATION DISCUSSION AND ANALYSIS 30

OVERVIEW 30

EXECUTIVESUMMARY 30

COMPENSATIONPHILOSOPHYANDOBJECTIVES 34

THEROLEOFTHECOMPENSATIONCOMMITTEEANDTHEEXECUTIVEOFFICERSINDETERMININGEXECUTIVECOMPENSATION 34

ELEMENTSUSEDTOACHIEVECOMPENSATIONPHILOSOPHYANDOBJECTIVES 36

COMPENSATIONPOLICIESANDOTHERINFORMATION 44

COMPENSATION COMMITTEE REPORT 46

COMPENSATION COMMITTEE INTERLOCKS AND INSIDERPARTICIPATION 46

ANALYSIS OF RISK IN THE COMPANY’S COMPENSATIONSTRUCTURE 47

SUMMARY COMPENSATION TABLE FOR 2019 48

GRANTS OF PLAN-BASED AWARDS FOR 2019 49

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END2019 50

OPTION EXERCISES AND STOCK VESTED DURING FISCALYEAR 2019 52

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGEIN CONTROL 53

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITYCOMPENSATION PLANS 55

EMPLOYMENT AGREEMENTS WITH NAMED EXECUTIVEOFFICERS 56

PROPOSAL NO. 3: ADVISORY VOTE TO APPROVEFREQUENCY OF FUTURE ADVISORY VOTES ON NAMEDEXECUTIVE OFFICER COMPENSATION 57

GENERAL 57

VOTESTANDARD 57

PROPOSAL NO. 4: RATIFICATION OF INDEPENDENTREGISTERED PUBLIC ACCOUNTING FIRM 58

GENERAL 58

VOTESTANDARD 58

REPORT OF THE AUDIT COMMITTEE 59

FEES PAID TO KPMG LLP 60

POLICY ON AUDIT COMMITTEE PRE-APPROVAL OF AUDITAND PERMISSIBLE NON-AUDIT SERVICES OF KPMG 60

CERTAIN RELATIONSHIPS AND RELATED PERSONTRANSACTIONS 61

PROPOSALS AND NOMINATIONS FOR 2021 ANNUALMEETING OF STOCKHOLDERS 62

STOCKHOLDERPROPOSALSFORINCLUSIONINPROXYMATERIALS 62

NOMINATIONSOFDIRECTORCANDIDATESANDSTOCKHOLDERPROPOSALSNOTINTENDEDFORINCLUSIONINPROXYMATERIALS 62

QUESTIONS AND ANSWERS ABOUT THE PROXYMATERIALS AND THE ANNUAL MEETING 63

GENERAL INFORMATION 68

OTHER MATTERS 68

APPENDIX A - RECONCILIATION OF ADJUSTED EBITDA 69

TABLE OF CONTENTS

TABLE OF CONTENTS

#NC10008643X1_DEF14A_HTM_TE1

#NC10008643X1_DEF14A_HTM_TE1

TABLE OF CONTENTS

Certain statements contained in this Proxy Statement include “forward-looking statements” within the meaning ofthe Private Securities Litigation Reform Act of 1995. In particular, statements made that are not historical factsmay be forward-looking statements and can be identified by words such as “should,” “may,” “will,” “anticipates,”“expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and similar expressions. Such statements arebased on management’s current expectations, are not guarantees of future performance and are subject to risksand uncertainties that could cause actual results to differ materially from the results projected, expressed orimplied by these forward-looking statements. These risks and uncertainties include: uncertainties regarding theduration and severity of the COVID-19 pandemic and measures intended to reduce its spread; the loss of one ormore significant suppliers or a reduction in significant volume from such suppliers; our ability to meet or exceedcustomers’ demand and expectations; significant current competition and the introduction of new competitors orother disruptive entrants in our industry; the risk that our facilities lack the capacity to accept additional vehiclesand our ability to obtain land or renew/enter into new leases at commercially reasonable rates; our ability toeffectively maintain or update information and technology systems; our ability to implement and maintainmeasures to protect against cyberattacks and comply with applicable privacy and data security requirements;our ability to successfully implement our business strategies or realize expected cost savings and revenueenhancements, including from our margin expansion program; business development activities, includingacquisitions and integration of acquired businesses; our expansion into markets outside the U.S. and theoperational, competitive and regulatory risks facing our non-U.S. based operations; our reliance on subhaulersand trucking fleet operations; changes in used-vehicle prices and the volume of damaged and total loss vehicleswe purchase; economic conditions, including fuel prices, commodity prices, foreign exchange rates and interestrate fluctuations; trends in new- and used-vehicle sales and incentives; and other risks and uncertaintiesidentified in our filings with the Securities and Exchange Commission (the “SEC”), including under “Risk Factors”in our Annual Report on Form 10-K for the year ended December 29, 2019, filed with the SEC on March 18,2020. Additional information regarding risks and uncertainties will also be contained in subsequent annual andquarterly reports we file with the SEC. The forward-looking statements included in this release are made as ofthe date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement toreflect new information or events, except as required by law.

TABLE OF CONTENTS

PROXY STATEMENT SUMMARY ThissectionhighlightsinformationaboutIAA,Inc.(“we,”“our,”“us,”“IAA”orthe“Company”)andourBoardofDirectors(the“Board”)thatiscontainedelsewhereinthisProxyStatement.ThissectiondoesnotcontainalloftheinformationthatyoushouldconsiderandyoushouldreadtheentireProxyStatementbeforevoting.

ABOUT IAA AND THE SPIN-OFF

OnJune28,2019,welaunchedasanindependent,publicly-tradedcompanyuponourseparation(the“Spin-Off”)fromKARAuctionServices,Inc.(“KAR”).ToeffecttheSpin-Off,KARdistributed100%oftheissuedandoutstandingsharesofIAAcommonstocktoholdersofrecordofKAR’scommonstockonJune18,2019,onaproratabasis.FollowingtheSpin-Off,IAAbecameanindependentpublicly-tradedcompanyandislistedontheNewYorkStockExchange(the“NYSE”)underthesymbol“IAA.”PleaseseeourAnnualReportonForm10-KforthefiscalyearendedDecember29,2019(the“2019AnnualReport”)foradditionalinformation.The2020annualmeetingofstockholders(the“AnnualMeeting”)willbeourfirstannualmeetingofstockholders.

ANNUAL MEETING OF STOCKHOLDERS

DateandTime: 9:00a.m.,EasternDaylightTime,onJune17,2020

Location: Onlineatwww.virtualshareholdermeeting.com/IAA2020

RecordDate: StockholdersofrecordasofthecloseofbusinessonApril20,2020areentitledtonoticeofandtovoteattheAnnualMeeting.

ITEMS TO BE VOTED ON AT ANNUAL MEETING OF STOCKHOLDERS

ProposalOur Board’s

Recommendation Page

1. ElectionofeachofthethreeClassIdirectornomineestotheBoardtoserveuntilour2023annualmeetingofstockholdersanduntiltheirrespectivesuccessorsaredulyelectedandqualified.

FOR eachdirectornominee

6

2. Approval,onanadvisorybasis,ofthecompensationofournamedexecutiveofficers.

FOR 29

3. Approval,onanadvisorybasis,ofthefrequencyoffutureadvisoryvotesonnamedexecutiveofficercompensation.

1 YEAR 57

4. RatificationoftheappointmentofKPMGLLPasourindependentregisteredpublicaccountingfirmforthefiscalyearendingDecember27,2020.

FOR 58

1

TABLE OF CONTENTS

IMPORTANT NOTICE REGARDING INTERNET AVAILABILITY OF PROXY MATERIALSThisproxystatementandour2019AnnualReportareavailableontheInternetatwww.proxyvote.com.Thesematerialsarealsoavailableonourcorporatewebsiteathttps://investors.iaai.com/.Theother

informationonourcorporatewebsitedoesnotconstitutepartofthisProxyStatement.

BOARD OF DIRECTORS (PAGES 8 - 13)

Name AgeDirector

Since Independent Primary OccupationCommittee

Membership**

John P. Larson 57 2019 Yes ChairmanoftheBoardofIAA,Inc.andChiefExecutiveOfficerofBestop,Inc.

—

Brian Bales 57 2019 Yes ExecutiveVicePresidentandChiefDevelopmentOfficerofRepublicServices,Inc.

RC(Chair),AC

Bill Breslin 70 2019 Yes FounderandChiefExecutiveOfficerofWenonahConsulting

CC,NCGC

Gail Evans 60 2020 Yes ChiefDigitalOfficerofMercer,LLC

CC,RC

Sue Gove 61 2019 Yes PresidentofExcelsiorAdvisors,LLC

AC(Chair),RC

Lynn Jolliffe 68 2019 Yes ChiefExecutiveOfficerofJolliffeSolutions,Inc.

CC(Chair),NCGC

Peter Kamin 58 2019 Yes FounderandManagingPartnerof3KLimitedPartnership

NCGC(Chair),AC

Olaf Kastner 64 2019 Yes FormerRegionalPresidentandChiefExecutiveOfficerforChinafortheBMWGroup

CC,RC

John W. Kett 56 2019 No ChiefExecutiveOfficerandPresidentofIAA,Inc.

—

**AC=AuditCommittee;CC=CompensationCommittee;NCGC=NominatingandCorporateGovernanceCommittee;RC=RiskCommittee

2

TABLE OF CONTENTS

2019 BUSINESS HIGHLIGHTS

FortheyearendedDecember29,2019,theCompanyagaindeliveredsolidgrowthinnetrevenue,operatingprofit,netincomeandadjustedEBITDA.Specifichighlightsforfiscal2019included(dollarsinmillions):

Net revenue was up 8% to$1,436.8 million.

Operating profit increased 12% to $317.8 million.

Achieved net income of$193.2 million, an increase of 5%.

Adjusted EBITDA* rose 7% to$411.7 million. *AdjustedEBITDAisanon-GAAPmeasureandisdefinedand

reconciledtothemostcomparableGAAPmeasure,netincome,in

AppendixA.

3

TABLE OF CONTENTS

CORPORATE GOVERNANCE HIGHLIGHTS (PAGES 14 - 20)

Wearecommittedtohighstandardsofethicalandbusinessconductandstrongcorporategovernancepractices.Thiscommitmentishighlightedbythepracticesdescribedbelowaswellastheinformationcontainedonthe“Governance”sectionofourwebsiteathttps://investors.iaai.com/governance.TheinformationonourwebsiteisnotpartofthisproxystatementandisnotdeemedincorporatedbyreferenceintothisproxystatementoranyotherpublicfilingmadewiththeSEC.

• Majority Voting:Wemaintainamajorityvotingstandardforuncontesteddirectorelectionswithapolicyfordirectorstotendertheirresignationshouldamajorityofthevotescastnotbeintheirfavor.

• Director and Committee Independence:Eightofourninedirectorsareindependent,andallcommitteesofourBoardarecomprisedentirelyofindependentdirectors.

• Independent Chairman:WehaveanindependentChairmanoftheBoardwhopresidesovertheexecutivesessionsoftheindependentdirectorsandservesastheprincipalliaisonbetweentheindependentdirectorsandtheCompany’sChiefExecutiveOfficer.

• Gender Diversity:One-thirdofourBoardiscomprisedofwomenandtwoofthestandingcommitteesofourBoardarechairedbyfemaledirectors.

• Low Average Tenure: SevenofourninedirectorsjoinedourBoardonorafterourSpin-OffinJune2019.

• Annual Board and Committee Evaluations:TheBoardandeachcommitteeevaluatesitsperformanceeachyear.

• Executive Sessions:OurindependentdirectorsmeetinexecutivesessionateachregularlyscheduledBoardmeeting.

• Annual Management and CEO Evaluation and Succession Planning:OurBoardconductsanannualevaluationandreviewofourCEOandeachexecutiveofficer’sperformance,developmentandsuccessionplan.

4

✔ Pay for performance: Ourannualincentiveprogramis100%performance-basedandourequityincentiveprogramisheavilyperformance-based.Ourfirstannuallong-termequitygrantsin2020consistedofatleast50%performance-basedstockunits(“PRSUs”).

✔ Independent Compensation Committee:AllofthemembersofourCompensationCommitteeareindependentunderNYSErules.

✔ Independent compensation consultant:TheCompensationCommitteeretainsitsownindependentcompensationconsultanttoevaluateandreviewourexecutivecompensationprogramandpractices.

✔ Maximum payout caps:TheCompensationCommitteesetsmaximumamountsthatmaybepayableforannualcashincentivecompensationandPRSUs.

✔ Clawback policy for financial misconduct:Ourclawbackpolicyprovidesfortherecoveryandcancellationofincentivecompensationofanexecutiveofficerintheeventwearerequiredtoprepareanaccountingrestatementduetosuchexecutiveofficer’sintentionalmisconduct.

✔ Severance benefits for qualifying termination:SeverancebenefitsforaterminationwithoutachangeincontrolaretwotimesbasesalaryandtargetbonusfortheCEOand1.5timesbasesalaryandtargetbonusfortheCFO,President,U.S.Operations,andCLO,andonetimesbasesalaryandtargetbonusforotherexecutiveofficers.ChangeincontrolseverancebenefitsarethreetimesbasesalaryandtargetbonusfortheCEOand2.5timesbasesalaryandtargetbonusfortheCFO,President,U.S.Operations,andCLO,and1.5timesbasesalaryandtargetbonusforotherexecutiveofficers.

✔ “Double-trigger” vesting provisions in equityaward agreements:ForallIAAequitygrants,acceleratedvestingofassumedorreplacedequityawardsuponachangeincontroloftheCompanyisonlypermittedifanexecutiveexperiencesaqualifyingterminationofemploymentinconnectionwithorfollowingsuchchangeincontrol.

✔ Robust equity ownership requirements:Wehavestockownershipguidelinesthatareapplicabletoourexecutiveofficers.ThestockownershipguidelineforourCEOisfivetimeshisannualbasesalary,andtheCEOcurrentlyholdsfivetimeshisannualbasesalary.Thestockownershipguidelineforourothernamedexecutiveofficersisthreetimestheirannualbasesalary.Allexecutiveofficersarerequiredtohold50%ofvestedshares,netoftaxes,untilstockownershipguidelinesaremet.

✘ Provide excessive perquisites:Weprovidealimitednumberofperquisitesthataredesignedtoattractandretainhighlyqualifiedexecutives.

✘ Maintain a defined benefit pension plan:Wedonotmaintainadefinedbenefitpensionplanforourexecutiveofficers.

✘ Allow hedging or pledging of the Company’ssecurities:Weprohibithedging,pledgingandshortsalesofCompanystockbyourdirectorsandexecutiveofficers.

✘ Reprice stock options:Stockoptionexercisepricesaresetequaltothegrantdatemarketpriceandcannotberepricedordiscountedwithoutstockholderapproval.

TABLE OF CONTENTS

EXECUTIVE COMPENSATION (PAGES 29 - 56)

WeadoptedacompensationprogramstructuredtoachieveacloseconnectionbetweenexecutivepayandCompanyperformance.Formoreinformationregardingournamedexecutiveofficercompensation,see“CompensationDiscussionandAnalysis”andthecompensationtablesthatfollowsuchsection.

WHAT WE DO

WHAT WE DON’T DO

5

TABLE OF CONTENTS

PROPOSAL NO. 1: ELECTION OF DIRECTORS

GENERAL

OurBoardcurrentlyconsistsofninedirectorsandisdividedintothreeclassesasfollows:

Class I directors with terms expiring at the Annual Meeting

Class II directors with terms expiring at the 2021 annual

meeting of stockholders

Class III directors with terms expiring at the 2022 annual

meeting of stockholders

JohnW.KettPeterKaminLynnJolliffe

BillBreslinBrianBalesOlafKastner

GailEvansSueGove

JohnP.Larson

ThedirectorsdesignatedasClassIdirectorshavetermsexpiringattheAnnualMeeting.ThedirectorsdesignatedasClassIIdirectorshavetermsexpiringatthe2021annualmeetingofstockholders,andthedirectorsdesignatedasClassIIIdirectorshavetermsexpiringatthe2022annualmeeting.Commencingwiththe2020annualmeetingofstockholders,directorsforeachclasswillbeelectedattheannualmeetingofstockholdersheldintheyearinwhichthetermforthatclassexpires.AttheAnnualMeeting,ourClassIdirectornomineeswillbeelectedtothree-yeartermsexpiringatthe2023annualmeetingofstockholders.Atthe2021annualmeetingofstockholders,ClassIIdirectorswillbeelectedtoone-yeartermsexpiringatthe2022annualmeetingofstockholders.Atthe2022annualmeetingofstockholders,ClassIIIdirectorswillbeelectedtoone-yeartermsexpiringatthe2023annualmeetingofstockholders.Fromandafterthe2023annualmeetingofstockholders,theBoardwillnolongerbeclassifiedandeachdirectorwillstandforelectionannually.

OntherecommendationofourNominatingandCorporateGovernanceCommittee(the“NominatingCommittee”),theBoardhasnominatedthreecandidatestobeelectedasClassIdirectorsattheAnnualMeeting.Ifelected,theClassIdirectorswillserveforthreeyeartermsexpiringatthe2023annualmeetingofstockholdersanduntiltheirrespectivesuccessorsaredulyelectedandqualified.

Messrs.KettandKaminandMs.JolliffehaveeachconsentedtobeingnamedinthisProxyStatementandtoserveasadirectorifelected.WehavenoreasontobelievethateitherMr.Kett,Mr.KaminorMs.Jolliffewillbeunableorunwillingforgoodcausetoserveifelected.IntheeventMr.Kett,Mr.KaminorMs.JolliffeisunableforanyreasonorunwillingforgoodcausetoserveatthetimeoftheAnnualMeeting,thepersonswhoaredesignatedasproxyholdersmayexercisediscretionaryauthoritytovoteforasubstitutenomineeselectedbyourBoardorourBoardmayreducethenumberofdirectorsontheBoard.

DIRECTOR INDEPENDENCE

TheBoardisresponsiblefordeterminingtheindependenceofourdirectors.UnderNYSErules,adirectorqualifiesasindependentiftheBoardaffirmativelydeterminesthatthedirectorhasnomaterialrelationshipwithus(eitherdirectlyorasapartner,stockholderorofficerofanorganizationthathasarelationshipwithus).Whilethefocusoftheinquiryisindependencefrommanagement,theBoardisrequiredtobroadlyconsider,anddidsoconsider,allrelevantfactsandcircumstancesinmakingitsindependencedeterminations.Baseduponitsevaluation,ourBoardhasaffirmativelydeterminedthateachofMessrs.Bales,Breslin,Kamin,KastnerandLarsonandMses.Evans,GoveandJolliffeisanindependentdirectorinaccordancewithapplicableNYSErules.Mr.KettisnotanindependentdirectorduetohisserviceasourChiefExecutiveOfficer.

6

TABLE OF CONTENTS

BOARD COMPOSITION

Thefollowingprovidesasnapshotofourninedirectors:

Inaddition,webelieveeachofourninedirectors,includingeachofthethreeClassIdirectornominees,possessestheskillsandqualificationsnecessaryforeffectiveserviceasadirector.

Diverse Range of Qualifications and Skills Represented by Our Directors

Capital Markets / Capital Allocation &

Investor RelationsHuman Resources Qualified Financial Expert

Commercial Real Estates Industry Knowledge Risk Oversight

Current Or Former CEO Insurance Industry / Insurance ClaimsSoftware, Technology &

Social Media / Digital

Diversity M&A Experience Strategic Planning

Global Experience Public Company Board Experience Talent Management

7

John W. Kett

Chief Executive Officer Age:56 Current Board Committees: None

Career Highlights

• CEOofIAAsinceMay2014.

– Servedavarietyofexecutiverolesinhis14yearswithIAA, helpingIAAbecomeanindependentpubliccompany reachingover$1.4billioninannualrevenueandsellingmore than2.5millionvehicles.

– ServedasSeniorVicePresidentofPlanningand BusinessDevelopment,CFOandPresidentbetween2001 and2014.

• SitsonthenationalboardofdirectorsforSkillsUSAsince2017.

• SitsontheExecutiveAdvisoryCounciltotheNorthernIllinoisUniversityCollegeofBusiness.

• HeldseniorfinancialrolesatCentralSteelandWireCo.,SafeliteGlassCorporation,NewarkElectronicsandDeloitteLLPbetween1985and2001.

• GraduateofNorthernIllinoisUniversityandNorthwesternUniversity(MBA).

Skills and Qualifications

✔ SignificantknowledgeandunderstandingofIAA’sservices,operationsandbusinessenvironment

✔ Extensivebusiness,managementandoperationalexperienceasseniorexecutiveandCEOintheautomotiveinsuranceclaimtechnologyandservicesindustries,whichprovideshimwithperspectiveintotheCompany’schallenges,operations,andstrategicopportunities.

TABLE OF CONTENTS

INFORMATION REGARDING DIRECTORS AND DIRECTOR NOMINEES

ThefollowinginformationisfurnishedwithrespecttoeachofourthreeClassIdirectornominees,aswellasoursixcontinuingdirectors.TheinformationiscurrentasofthedateofthisProxyStatement.

Mr.KettandMs.JolliffejoinedtheBoardinconnectionwiththeSpin-OffandwereselectedasdirectorsbyKAR.Mr.KaminalsojoinedtheBoardinconnectionwiththeSpin-OffandwasinitiallyidentifiedasapotentialdirectorcandidatebyMr.Kett,ourChiefExecutiveOfficer,and,followingconsiderationbyKAR,wasappointedtotheBoard.

Class I Director Nominees

8

Peter Kamin

Independent Director sinceJune2019 Age: 58 Current Board Committees: NominatingCommittee(Chair) AuditCommittee

Career Highlights

• FounderandManagingPartnerof3KLimitedPartnership,whichpartnerswithmanagementteamsseekingcapitaltoimplementgrowthstrategiesthatcreatemeaningfulstockholdervalue,since2012.

• FoundingmemberandManagingPartnerofValueActCapital,whichgrewintoaleadinginvestmentmanagementorganizationduringMr.Kamin’stenure,from1999to2012.

• FounderandmanagerofPeakInvestmentL.P.,whichwasorganizedtomakeinvestmentsinselectdomesticpublicandprivatecompanies,from1992to1999.

• TrusteeofTuftsUniversity.

• GraduateofTuftsUniversityandHarvard’sGraduateSchoolofBusiness(MBA).

Other Public Company Directorships in Last Five Years

• MemberoftheboardofdirectorsofTileShopHoldings(previouslyNasdaq:TTS)since2012andChairmansince2018.TheTileShopHoldingsdelisteditscommonstockinNovember2019.

• MemberoftheboardofdirectorsofMAMSoftwareLimited(formerlyNasdaq:MAMS)since2012.MAMSoftwareLimitedsoldthecompanyanddelisteditscommonstockinOctober2019.

• MemberoftheboardofdirectorsofAmbassadorsGroup,Inc.(previouslyNasdaq:EPAX)from2012toOctober2015.


✔ Serviceontheboardsofothersignificantcompaniesandhisyearsofexperienceintheautomotiveindustrybringanin-depthunderstandingofIAA’sbusinesstotheBoard.

✔ Significantfinancial,investment,andmanagementexperienceinbothpublicandprivatecompanies.

Lynn Jolliffe

Independent Director sinceJune2019 Age:68 Current Board Committees: CompensationCommittee(Chair) NominatingCommittee

Career Highlights

• ChiefExecutiveOfficerofJolliffeSolutions,providingconsultinginhumancapitalandtalentmanagementsince2015.

• HeldvariousmanagementpositionsatIngramMicroInc.,atechnologydistributioncompanyfrom1999to2015,including:

– ExecutiveVicePresident,GlobalHumanResourcesfrom 2007to2015.

– VicePresident,HumanResourcesfortheNorthAmerica regionfrom2006to2007.

– RegionalVicePresident,HumanResourcesandServices forIngramMicroEuropeanCoordinationCenterfrom1999 to2006.

• Servedinvariouscapacities,includingVicePresidentandChiefFinancialOfficerwithresponsibilityforhumanresources,attwoCanadianretailers,includingHoltRenfrew,from1985to1999.

• BegancareeratBellCanadain1973andthenmovedtoBankofMontrealin1979.

• GraduatedfromQueensUniversityandUniversityofToronto(MBA).


• MemberoftheboardofdirectorsofKAR(NYSE:KAR)from2014to2019.


✔ Seniorexecutiveleadershipandchieffinancialofficerexperience,includingfunctionalandleadershipexperienceinfinance,humanresourcesandgeneralmanagement,executivecompensationdecisions,strategiesandpoliciesfortheacquisitionanddevelopmentofemployeetalent,enableshertooffertheBoardaseasonedcorporategovernanceandfinancialmanagementperspective.

✔ Deepunderstandingofbusinessdriversfromthefinancial,operationalandpeopleperspective,aswellasdiversityinviewpointandinternationalbusinessexperience,gainedfromexperienceinmultipleindustriesacrossthreecontinents.

TABLE OF CONTENTS

9

Continuing DirectorsBrian Bales

Independent DirectorsinceJune2019 Age:57 Current Board Committees: RiskCommittee(Chair) AuditCommittee

Career Highlights

• ExecutiveVicePresident,ChiefDevelopmentOfficer,atRepublicServices,Inc.,aleaderinthedomesticnon-hazardoussolidwasteindustry,since2015.

• ExecutiveVicePresident,BusinessDevelopmentatRepublicServices,Inc.from2008to2015,andVicePresident,CorporateDevelopment,from1998to2008.

• HeldrolesofincreasingresponsibilityinfinanceandbusinessdevelopmentforRyderSystem,Inc.from1993to1998.

• ChiefFinancialOfficerforEDIFEX&VTACommunicationsfrom1988to1993.

• BeganhisprofessionalcareerasanaccountantwithPriceWaterhouse,nowPricewaterhouseCoopers,from1986to1988.

• GraduateoftheUniversityofTennessee(BS,BusinessAdministration)andCertifiedPublicAccountant.s


✔ ExecutiveleaderataFortune300companywithextensiveexperienceinbusinessstrategy,transformationalgrowthincludingmergers,acquisitions&divestitures,riskmanagement&oversight,commercialrealestate&infrastructuredevelopment,andsustainability&corporateresponsibility

✔ Qualifiedfinancialexpertwithsignificantexperienceincorporatefinance,capitalmarkets,capitalallocation,investorrelations,businessplanning&analysisandfinancialaccounting&controls.

✔ SignificantmanagementexperienceenableshimtoprovidetheBoardwithadditionalperspectiveontheCompany’soperations.

William (Bill) Breslin

Independent Director sinceJune2019 Age:70 Current Board Committees: CompensationCommittee NominatingCommittee

Career Highlights

• FounderandCEOofWenonahConsulting,whichspecializesindeliveringservice,expenseandlossmanagementsolutionstoclaimsoperationsacrosstheinsuranceindustry,since2009.

• PresidentofVericlaimRepairSolutions,amanagedrepairnetworkofcertifiedlocal,regionalandnationalcontractors,from2011to2017.

• ExecutiveVicePresidentandChiefOperatingOfficeratTriServAlliance,aclaimsmanagementorganizationestablishedbysevenBlueCrossBlueShieldcompaniestoservice2.9millioncustomersinninestates,from2008to2009.

• LedtheclaimsfunctionasSeniorVicePresidentofClaimsforUSAAfrom1999to2008;forGEFinancialAssurancefrom1996to1999;andforPrudentialInsurancefrom1974to1996.

• MemberoftheboardofdirectorsofInsightServicesGroup,whichprovidesfraudinvestigationsandIndependentMedicalevaluationsfortheindustry,since2014.

• BoardmemberofWestHillGlobal,Inc.,whichisapropertymanagesrepairbusiness,sinceSeptember2018.

• BoardmemberofSummitTopCoGP,LLCClassicCollision,whichprovidesautomobilerepairservices,sinceMarch2020.

• BoardmemberofABRAAutoBodyandGlass,anetworkofautobodyrepairfacilitiesfortheindustry,from2011to2019.

• BoardmemberofProntoInsurancefrom2014to2018.

• BoardmemberofEnservio,Inc.,acontentsreplacementcompanyforhomeownerclaims,from2010to2016.

• EVPatTriservAlliance,buildingacompanytoprovidehealthcareforthemilitaryandtheirfamiliesinthesouthernregion,from2008to2009.

• GraduateofSt.BernardCollege(BA,Education).


✔ SeniorexecutiveleadershipandboardofdirectorsexperienceenableshimtooffertheBoardaseasonedcorporategovernanceperspective.

✔ Significantexperienceinconsulting,claimsmanagement,andlossmanagementsolutionsacrosstheinsuranceandautomotiveindustries.

TABLE OF CONTENTS

10

Gail Evans

Independent DirectorsinceFebruary2020 Age:60 Current Board Committees: CompensationCommittee RiskCommittee

Career Highlights

• ServedinseveralleadexecutiverolesatMercer,aglobalconsultingleaderinadvancinghealth,wealthandcareer,andawholly-ownedsubsidiaryofMarsh&McLennanCompanies(NYSE:MMC),including:

– ChiefDigitalOfficersinceJune2018.

– MemberofExecutiveLeadershipteamsince2016.

– GlobalChiefInformationOfficerfrom2016to2018.

• PartnerGroupProgramManagerforMicrosoft,andpriortothatGeneralManagerofMicrosoftStudios,Services&Operations,from2013to2016.

• VicePresidentandGeneralManagerforHewlett-Packard,responsibleforworldwidecountryengagementandwebcapabilitiesaswellasexecution,search,personalizationanddigitalmarketingforHP’swebpresence,from2010to2013.

• TechnologySeniorVicePresidentforBankofAmericafrom2007to2010.

• ChiefTechnologyExecutive,amongotherexecutivepositions,atEastmanKodakCompanyfrom1980to2007.

• GraduateofNazarethCollegeandtheSimonGraduateSchoolofBusinessattheUniversityofRochester(MBA).


✔ Extensiveandcomprehensiveexperienceintheareasofdigitaltransformation,emergingtechnologies,bigdataandanalytics,enterprisearchitectureandtechnologyleadership.

✔ Additionally,sheishighlyskilledintheareasofAPIeconomy&marketplaceprogram,productmanagementtechnologystrategyandweb&e-commerce.

Sue Gove

Independent Director sinceJune2019 Age:61 Current Board Committees: AuditCommittee(Chair) RiskCommittee

Career Highlights

• FounderandPresidentofExcelsiorAdvisors,LLC,aretailconsultingandadvisoryfirm.

• PresidentandCEOofGolfsmithInternationalHoldings,Inc.,alongwithseveralotherseniorleadershiproles,includingChiefOperatingOfficer,ChiefFinancialOfficerandExecutiveVicePresident,from2008to2014.

• Servedinseniorfinancial,operatingandstrategicrolesduring25yearsatZaleCorporation,includingExecutiveVicePresidentandChiefOperatingOfficerfrom2002to2006,andChiefFinancialOfficerfrom1998to2003.

• NationalAssociationofCorporateDirectors(NACD)BoardLeadershipFellowsinceDecember2019.

• GraduateoftheUniversityofTexasatAustin(BBA,Accounting).


• DirectorofBedBathandBeyond,Inc.since2019(Nasdaq:BBBY).

• DirectorofConn’s,Inc.since2020(Nasdaq:CONN).

• DirectorofTailoredBrands,Inc.since2017(NYSE:TLRD).

• DirectorofIconixBrandGroupfrom2014to2019(Nasdaq:ICON).

• DirectorofLogitechInternationalSAfrom2015to2018(Nasdaq:LOGI).

• DirectorofAutoZoneInc.from2005to2017(NYSE:AZO).


✔ Backgroundasachiefexecutiveofficer,chiefoperatingofficer,andchieffinancialofficerprovidestheBoardwithsignificantexecutiveandseniorleadershipexperienceinfinance,operations,marketing,e-commerce,andstrategy.

✔ ExtensiveexperienceservingontheboardsofdirectorsofotherpubliccompaniesallowshertooffertheBoardvaluableexpertiseingovernanceandbestpracticesforapubliccompanyonaglobalscale.

TABLE OF CONTENTS

11

Olaf Kastner

Independent Director sinceJune2019 Age:64 Current Board Committees: CompensationCommittee RiskCommittee

Career Highlights

• StrategyAdvisorinChinafortheBMWGroupfromMarchtoSeptember2018,afterwhichhesteppedintoretirement.

• ServedinvariousotherleadexecutivepositionsattheBMWGroupfrom1998to2018:

– RegionalPresidentandChiefExecutiveOfficerforChina fortheBMWGroupfrom2015to2018.

– PresidentandChiefExecutiveOfficerofBMWBrilliance AutomotiveLtd.inChinafrom2009to2015.

– FinanceDirectorofBMW(UK)Ltd.,Bracknell,from2006to 2009.

– ManagingDirectorBavariaWirtschaftsagenturGmbH,a subsidiaryofBMWAG,from1998to2006.

• HoldvariousManagementandSeniorManagementpositionsatColoniaAG/AXAGroupfrom1985to1998.

• GraduateoftheUniversityofHamburg(MBA).


✔ BringstotheBoarddecadesofexperienceandleadershipintheautomotiveindustryandinternationalinsurancebusiness,aswellasacomprehensiveunderstandingofhowIAA’sindustryoperates.

✔ Possessesstronginternationalworkingexperience,includingriskandcrisesmanagement,aswellasmultinationalexpertiseinleadinglargecostandchangemanagementprojects.

John P. Larson

Independent Chairman sinceJune2019 Age:57 Current Board Committees: None

Career Highlights

• ChiefExecutiveOfficerandDirectorofBestop,Inc.,aleadingmanufacturerofsofttopsandaccessoriesforJeepvehicles,since2015.

• LeadIndependentDirectorKARAuctionServices,ledboardalongwithChairmanthroughspinoffofIAA,from2015to2019.

• DirectorSCAPerformance,aleadingmanufacturerofhigh-endcustomtrucksforFord,GMandDodge,from2018to2020.

• ServedinanumberofseniormanagementcapacitiesatGeneralMotorsCompany,from1986to2007.

– GeneralManageroverseeingoperationsfortheBuick, PontiacandGMCDivisionsfrom2005to2007.

– GeneralDirectorofFinanceforU.S.Sales,Serviceand MarketingOperationsfrom2001to2004.

– DirectorGeneralMotor’sUsedCarRemarketingactivity from1999to2000.

• ChiefExecutiveOfficerofEscortInc.,anautomotiveelectronicsmanufacturer,from2008to2014,andPresidentandChiefOperatingOfficerfrom2007to2008.

• GraduatedfromNorthernIllinoisUniversity(B.S.Finance)andPurdueUniversity(M.S.,Management).


• DirectorandLeadIndependentDirectorofKAR(NYSE:KAR)from2015to2019.


✔ Extensivebusiness,managementandoperationalexperienceasCEOintheautomotiveaftermarketandasaseniorexecutiveatoneoftheworld’slargestautomakers,GeneralMotorsCompany,aswellasexperienceinautomotiveremarketing,captivefinance(GMAC),rentalcarprogramdesignandautomotivedealeractivities,provideshimwithperspectiveintotheCompany’schallenges,operations,andstrategicopportunities.

✔ Extensiveexperienceasaseniorleaderincorporatefinancehasprovidedhimwithkeyskills,includingfinancialreporting,accountingandcontrol,businessplanningandanalysisandriskmanagement,thatarevaluabletotheoversightofourbusiness.

TABLE OF CONTENTS

12

TABLE OF CONTENTS

VOTE STANDARD

EachofthethreeClassIdirectornomineesmustreceivetheaffirmativevoteofamajorityofthevotescastintheelectionofdirectorsattheAnnualMeetingtobeelected(i.e.,thenumberofsharesvoted“FOR”adirectornomineemustexceedthenumberofvotescast“AGAINST”suchnominee).Abstentionsandbrokernon-votesarenotcountedasvotescast.

InaccordancewithourAmendedandRestatedBylaws(the“Bylaws”)andourCorporateGovernanceGuidelines,intheeventanincumbentdirectorfailstoreceiveamajorityofvotescastinanuncontestedelection,suchincumbentdirectormusttenderhisorherresignationimmediatelyfollowingthecertificationofthestockholdervoterelatingtosuchdirector’selection,whichtenderedresignationmustspecifythatitbecomeseffectiveonlyupontheBoard’sacceptanceofthetenderedresignation.

Withinninety(90)daysfollowingthecertificationofthestockholdervote,theNominatingCommitteewilldeterminewhethertorecommendacceptingthedirector’sresignationortakeotheractionandwillsubmitsuchrecommendationforpromptconsiderationbytheBoard.TheBoardwillactpromptlyontheNominatingCommittee’srecommendationandwilldiscloseitsdecisionwhethertoacceptthedirector’stenderedresignation(andthereasonsforrejectingtheresignation,ifapplicable)inaCurrentReportonForm8-KfiledwiththeSEC.TheNominatingCommitteemayconsideranyfactorsthattheNominatingCommitteedeemsrelevantindeterminingwhethertorecommendacceptingadirector’sresignation.Intheeventthatoneormoredirectors’resignationsareacceptedbytheBoard,theNominatingCommitteewillrecommendtotheBoardwhethertofillsuchvacancyorvacanciesortoreducethesizeoftheBoard.

Anyincumbentdirectorwhofailstoreceivethevotesrequiredforre-electioninanuncontestedelectionandwhotendershisorherresignationshallremainactiveandengagedinBoardactivitieswhiletheNominatingCommitteeconsiderswhethertorecommendacceptinghisorherresignation;provided, however,thatitisexpectedthatsuchincumbentdirectorshallvoluntarilyrecusehimselforherselffromparticipationinanyproceedingsorconsiderationbytheNominatingCommitteeortheBoardregardingwhethertoacceptsuchdirector’sresignationortotakeotheractionwithrespecttosuchdirector.

✔ The Board recommends a vote “FOR” the election of each of thethree Class I director nominees to the Board.

Proxies solicited by the Board will be voted “FOR” the election of each of the three Class I directornominees named in this Proxy Statement and on the proxy card unless stockholders specify a contraryvote.

13

TABLE OF CONTENTS

BOARD OF DIRECTORS STRUCTURE AND CORPORATE GOVERNANCE

ROLE OF THE BOARD OF DIRECTORS

OurBoard’sgoalsaretobuildlong-termvalueforIAA’sstockholdersandtoassurethevitalityoftheCompanyforitscustomers,employeesandtheotherindividualsandorganizationswhodependontheCompany.Toachievethesegoals,theBoardmonitorsboththeperformanceoftheCompany(inrelationtoitsgoals,strategyandcompetitors)andtheperformanceoftheChiefExecutiveOfficer,andoffershimconstructiveadviceandfeedback.

BOARD LEADERSHIP STRUCTURE

NeitherourBylawsnorourCorporateGovernanceGuidelinesrequiretheseparationoftheofficesoftheChairmanandtheChiefExecutiveOfficerandtheBoardisfreetochooseitsChairmaninanywaythatitdeemsbestforIAAatanygivenpointintime.Atpresent,theBoardhaschosentoseparatetheofficesofChairmanandChiefExecutiveOfficer.JohnW.KettcurrentlyservesasourChiefExecutiveOfficerandJohnP.LarsoncurrentlyservesasourindependentChairmanoftheBoard.

TheBoardrecognizesthattherolesofChiefExecutiveOfficerandChairmanoftheBoardaredistinct.WhiletheChiefExecutiveOfficerisresponsibleforsettingourstrategicdirectionandforourday-to-dayleadershipandperformance,theChairmanoftheBoardprovidesguidancetotheChiefExecutiveOfficerandsetstheagendafor,andpresidesover,meetingsoftheBoardofDirectors.TheBoardbelievesthatparticipationoftheChiefExecutiveOfficerasadirector,whilekeepingtherolesofChiefExecutiveOfficerandChairmanoftheBoardseparate,providestheproperbalancebetweenindependenceandmanagementparticipationatthistime.

IfourChairmanwasnotanindependentdirectorunderapplicableNYSErules,ourCorporateGovernanceGuidelinesprovidesthatourindependentdirectorswilldesignateoneoftheindependentdirectorsontheBoardtoserveasaleadindependentdirector.

BOARD OF DIRECTORS MEETINGS AND ATTENDANCE

TheBoardheld4meetingsduring2019followingtheSpin-Off.Eachofourdirectorsattendedatleast75%ofthemeetingsoftheBoardandBoardcommitteesonwhichheorsheservedin2019duringtheperiodwhichheorsheservedonourBoard.

AsstatedinourCorporateGovernanceGuidelines,weexpecteachdirectortoattendourannualmeetingofstockholders.TheAnnualMeetingisourfirstannualmeetingofstockholders.

14

TABLE OF CONTENTS

COMMITTEES OF THE BOARD OF DIRECTORS

WecurrentlyhavefourstandingcommitteesoftheBoard:theAuditCommittee,theCompensationCommittee,theNominatingCommitteeandtheRiskCommittee.Eachofourcommitteesoperatespursuanttoawrittencharter.Copiesofthecommitteechartersareavailableonthe“Governance”sectionofourwebsiteathttps://investors.iaai.com/governance.

Thefollowingtablesetsforththecurrentmembershipofeachcommittee:

Name Audit CommitteeCompensation

CommitteeNominating Committee Risk Committee

John P. Larson *Brian Bales ✔ CBill Breslin ✔ ✔Gail Evans ✔ ✔Sue Gove C ✔Lynn Jolliffe C ✔Peter Kamin ✔ COlaf Kastner ✔ ✔John W. Kett **

C CommitteeChair* IndependentChairmanoftheBoard** ChiefExecutiveOfficerofIAA

AdescriptionofeachBoardcommitteeissetforthbelow.

Audit CommitteeMeetings Held in 2019: 4

Primary Responsibilities:OurAuditCommitteehasthefollowingprimaryresponsibilities:• AssiststheBoardinitsoversightoftheintegrityofourfinancialstatements;• Responsiblefortheappointment,independence,qualificationsandperformanceofourindependent

registeredpublicaccountingfirm;• Overseesourfinancialreportingprocessandinternalcontrols;• Overseesourinternalauditfunction;• Reviewsandapprovesrelatedpartytransactions;and• Reviewsourprogramtomonitorcompliancewithourcodeofconductandethics.

Independence:EachmemberoftheAuditCommitteeisindependentundertheNYSErulesandalsomeetstheenhancedstandardsof“independence”establishedbytheNYSEandtheSECformembersoftheAuditCommittee.Inaddition,eachmemberoftheAuditCommitteeis“financiallyliterate”undertherulesoftheNYSE,andeachofMs.GoveandMessrs.BalesandKaminhasbeendesignatedasan“auditcommitteefinancialexpert”asthattermisdefinedbytheSEC.

Compensation CommitteeMeetings Held in 2019: 2

Primary Responsibilities:OurCompensationCommitteehasthefollowingprimaryresponsibilities:• Reviewsandrecommendspoliciesrelatingtothecompensationandbenefitsofourexecutiveofficers

andemployees;• ReviewsandapprovescorporategoalsandobjectivesrelevanttothecompensationofourCEOand

otherexecutiveofficers,evaluatestheperformanceoftheseofficersinlightofthosegoalsandobjectives,andapprovesthecompensationoftheseofficersbasedonsuchevaluations;

• Administerstheissuanceofequityandotherawardsunderourequityplans;and

15

TABLE OF CONTENTS

• AssiststheBoardindeterminingthatasatisfactorysystemisineffectforeducation,developmentandorderlysuccessionofseniorandmid-levelmanagers.

In2019,theCompensationCommitteeretainedClearBridgeCompensationGroupLLC(“ClearBridge”)toassistitinreviewingourcompensationprogramsandtheevaluationofspecificcompensation-relatedmatters.See“CompensationDiscussionandAnalysis—TheRoleoftheCompensationCommitteeandtheExecutiveOfficersinDeterminingExecutiveCompensation—RoleofIndependentCompensationConsultant”belowforadditionalinformation.

TheCompensationCommitteemayformsubcommitteesforanypurposethattheCommitteedeemsappropriateandmaydelegatetosuchsubcommitteessuchpowerandauthorityastheCommitteedeemsappropriate.TheBoardhasdelegatedcertainresponsibilitiesoftheCompensationCommitteetoanEquityAwardsCommittee,withMr.Kettasitssolemember,andgiventheEquityAwardsCommitteelimitedauthoritytoapproveandestablishthetermsofequityawardsgrantedtocertainemployeesoftheCompany(whoarenotexecutiveofficersormembersoftheboardofdirectors)underour2019OmnibusStockandIncentivePlan.

Independence:EachmemberoftheCompensationCommitteeisindependentundertheNYSErulesandalsomeetstheenhancedstandardsof“independence”establishedbytheNYSEformembersoftheCompensationCommittee.Inmakingthisdetermination,theBoardconsideredwhetherthedirectorhasarelationshipwiththeCompanythatismaterialtothedirector’sabilitytobeindependentfrommanagementinconnectionwiththedutiesofamemberoftheCompensationCommittee.

Nominating and Corporate Governance CommitteeMeetings Held in 2019: 3

Primary Responsibilities:OurNominatingCommitteehasthefollowingprimaryresponsibilities:• MakesrecommendationstotheBoardregardingcandidatesfordirectorshipsandthesizeand

compositionoftheBoard;• IdentifiesandrecommendstotheBoardindividualsqualifiedtoserveasdirectorsoftheCompanyand

oncommitteesoftheBoard;• Reviewsnon-employeedirectorcompensationonanannualbasisandmakesrecommendationstothe

Board;• OverseesourCorporateGovernanceGuidelinesandreportsandmakesrecommendationstothe

Boardconcerninggovernancematters;and• OverseestheannualevaluationprocessoftheBoardandeachofitscommittees.

Independence:AllofthemembersoftheNominatingCommitteeareindependentundertheNYSErules.

Risk CommitteeMeetings Held in 2019:0(RiskCommitteewasestablishedbytheBoardofDirectorsonOctober30,2019anditsfirstmeetingwasheldinFebruary2020)

Primary Responsibilities:OurRiskCommitteehasthefollowingprimaryresponsibilities:• AssiststheBoardinitsoversightoftheprincipalbusiness,financial,technology,operationaland

regulatoryrisksandexposuresoftheCompany;• EvaluatestheCompany’sappetiteandstrategyrelatingtokeyrisks,aswellastheguidelines,policies

andprocessesformonitoringrisk;• OverseestheCompany’sriskgovernancestructure,andtheguidelines,policiesandprocessesforrisk

assessmentandriskmanagement;• Overseesmattersspecificallyrelatingtocybersecurityandotherrisksrelatedtoinformationtechnology

systemsandprocedures;and• Develops,asdeterminednecessarybymanagementandtheBoard,anenterpriseriskmanagement

programandprovidesoversightforsuchprogram.

Independence:AllofthemembersoftheRiskCommitteeareindependentundertheNYSErules.

16

TABLE OF CONTENTS

BOARD OF DIRECTORS’ RISK OVERSIGHTOurBoardbelievesthateffectiveriskmanagementinvolvesourentirecorporategovernanceframework.BothmanagementandourBoardhavekeyresponsibilitiesinmanagingriskthroughouttheCompany,asshownbelow.OversightofrisksinherentintheirrespectiveareasofoversightaredelegatedtothevariousBoardcommittees,witheachcommitteereportingtoourBoardateachregularBoardmeeting.OurBoardbelievesthatthisstructureisconducivetoitsriskoversightprocess.

Risk Oversight ResponsibilitiesBoard Responsibilities

• Overalloversightoftheriskmanagementprocess• Directoversightofstrategic,operating,financialandliquidityrisks• Activeengagementwithmanagementregardingchallengesandrisksconsideredinmanagement’soperational,

financialandstrategicpresentations• Developmentofbusinessstrategyandmajorresourceallocation• Businessconductandcomplianceoversight• ReceivesregularreportsfromBoardcommitteesonspecificriskoversightresponsibilities

Audit Committee Compensation Committee Nominating Committee Risk Committee

• Responsibleforthequalityandintegrityoffinancialstatements

• Overseestheassessmentandmanagementofrisksrelatedtocompensationplansandpolicies

• OverseesBoardprocessesandcorporategovernance-relatedrisks

• Responsibleforthedevelopmentofanenterpriseriskmanagementprogram

• Overseesinternalcontrolsoverfinancialreportinganddisclosurecontrolsandprocedures

• Overseescompensationpoliciesandprograms,includingappropriateincentivesandcontrols

• OverseesrisksrelatingtodirectorsuccessionandthecompositionoftheBoard

• OverseestheCompany’sriskappetiteandstrategyrelatedtokeyrisks

• Responsiblefortheperformanceoftheindependentregisteredpublicaccountingfirm

• ReceivesandmonitorsreportsregardingtheCompany’shumancapitalmanagementrisks

• ResponsibleforreviewingrisksrelatedtosignificantlegalmattersinwhichtheCompanyisinvolved

• OverseesrisksrelatedtoethicsandrelatedissuesarisingfromtheCompany’swhistleblowerhotline

• Overseesrisksrelatedtoenvironmental,socialandgovernanceissues

• Overseescybersecurity-relatedrisksandrisksrelatedtoinformationtechnologysystemsandprocedures

Management Responsibilities

• EnsuresthatinformationwithrespecttomaterialrisksistransmittedtoseniorexecutivesandourBoard

• Identifiesmaterialrisksandimplementsappropriateriskmanagementstrategies

• Integratesriskmanagementintoourdecisionmakingprocess

• Attendscommitteemeetingsandreportsonmattersthatmaynotbeotherwiseaddressedatthesemeetings

OurBoardbelievesthattheprocessithasestablishedtoadministertheBoard’sriskoversightfunctionwouldbeeffectiveunderavarietyofleadershipframeworksand,therefore,doesnothaveamaterialeffectonourchoiceoftheBoard’sleadershipstructuredescribedaboveunder“BoardLeadershipStructure.”

17

TABLE OF CONTENTS

CORPORATE GOVERNANCE DOCUMENTS

TheBoardhasadoptedthefollowingcorporategovernancedocuments:

Document Purpose/Application

CodeofBusinessConductandEthics AppliestoalloftheCompany’semployees,officersanddirectors,includingthoseofficersresponsibleforfinancialreporting,aswellastemporaryserviceworkersandindependentcontractors.

CodeofEthicsforPrincipalExecutiveandSeniorFinancialOfficers

AppliestotheCompany’sprincipalexecutiveofficer,principalfinancialofficer,principalaccountingofficerorcontrollerandsuchotherpersonswhoaredesignatedbytheBoard.

CorporateGovernanceGuidelines ContainsgeneralprinciplesregardingthefunctionsoftheBoardanditscommittees.

CommitteeCharters ApplytothefollowingBoardcommittees,asapplicable:AuditCommittee,CompensationCommittee,NominatingCommitteeandRiskCommittee.

Theforegoingdocumentsarecontainedonthe“Governance”sectionofourwebsiteathttps://investors.iaai.com/governance.TheinformationonourwebsiteisnotpartofthisProxyStatementandisnotdeemedincorporatedbyreferenceintothisProxyStatementoranyotherpublicfilingmadewiththeSEC.

SELECTION OF NEW DIRECTORS; STOCKHOLDER RECOMMENDED DIRECTOR CANDIDATES

TheBoardisresponsiblefornominatingmembersforelectiontotheBoardandforfillingvacanciesontheBoardthatmayoccurbetweentheannualmeetingsofstockholders.TheNominatingCommitteeisresponsibleforidentifying,screeningandrecommendingcandidatestotheBoardforBoardmembership.WhenformulatingitsBoardmembershiprecommendations,theNominatingCommitteemayalsoconsideradviceandrecommendationsfromothers,includingthird-partysearchfirms,currentBoardmembers,management,stockholdersandotherpersons,asitdeemsappropriate.TheNominatingCommitteeretainedtheKatrisGroupinitssearchforadirectorcandidatewithdigitaldisruptionexperienceandtheKatrisGroupinitiallyidentifiedMs.Evansasapotentialdirectorcandidate.

TheNominatingCommitteeusesavarietyofmethodstoidentifyandevaluatepotentialcandidates.Considerationofcandidatestypicallyinvolvesaseriesofinternaldiscussions,reviewofcandidateinformation,andinterviewswithselectedcandidates.TheNominatingCommitteewillconsiderthecandidateagainstthecriteriaithasadopted,asfurtherdiscussedbelowunder“BoardQualificationsandDiversity,”inthecontextoftheBoard’sthen-currentcompositionandtheneedsoftheBoardanditscommittees,andwillultimatelyrecommendqualifiedcandidatesforelectiontotheBoard.

TheNominatingCommitteewillalsoconsiderdirectorcandidatesrecommendedbystockholdersforpotentialappointmentupontheoccurrenceofthenextvacancyontheBoardornominationinconnectionwiththenextannualmeetingofstockholders.CandidatesrecommendedbyastockholderareevaluatedinthesamemannerascandidatesidentifiedbytheNominatingCommittee.Inconsideringcandidatessubmittedbystockholders,theNominatingCommitteewilltakeintoconsiderationtheneedsoftheBoardandthequalificationsofthecandidate.StockholderswhowishtorecommendadirectorcandidateforconsiderationbytheNominatingCommitteeandtheBoardshouldsubmittheirrecommendationinwritingtotheBoardnolaterthantheJanuary1priortothenextannualmeetingofstockholders.SuchrecommendationmustincludeallinformationaboutthestockholderandthecandidateotherwiserequiredfordirectornominationsbyastockholderpursuanttoArticleII,Section5oftheBylaws.TheNominatingCommitteemayrequestadditionalinformationconcerningsuchdirectorcandidateasitdeemsreasonablyrequiredtodeterminetheeligibilityandqualificationofthedirectorcandidatetoserveasamemberoftheBoard.Inaddition,suchrecommendeddirectorcandidateshallmakethemselvesreasonablyavailabletobeinterviewedbytheNominatingCommittee.IftheNominatingCommitteedeterminesthatastockholderrecommendedcandidateissuitableformembershipontheBoard,itwillincludethecandidateinthepoolofcandidatestobeconsideredfornominationupontheoccurrenceofthenextvacancyontheBoardorinconnectionwiththenextannualmeetingofstockholders.

18

TABLE OF CONTENTS

Inaddition,astockholdermaynominatecandidatesforelectionasadirector,providedthatthenominatingstockholderfollowstheproceduressetforthinArticleII,Section5oftheBylawsfornominationsbystockholdersofpersonstoserveasdirectors,includingtherequirementsoftimelynoticeandcertaininformationtobeincludedinsuchnotice.Deadlinesforstockholdernominationsfornextyear’sannualmeetingareincludedunder“Requirements,IncludingDeadlines,forSubmissionofProxyProposals”below.

BOARD QUALIFICATIONS AND DIVERSITY

TheNominatingCommitteeandtheBoardbelievethatdiversityalongmultipledimensions,includingopinions,skills,perspectives,personalandprofessionalexperiences,andotherdifferentiatingcharacteristics,isanimportantelementofitsnominationrecommendations.TheNominatingCommitteehasnotidentifiedanyspecificminimumqualificationswhichmustbemetforapersontobeconsideredasacandidatefordirector.However,asdetailedinboththeNominatingCommitteeCharterandtheCorporateGovernanceGuidelines,Boardcandidatesareselectedbaseduponvariouscriteriaincludingexperience,skills,expertise,diversity,personalandprofessionalintegrity,character,businessjudgment,timeavailabilityinlightofothercommitments,dedication,absenceofconflictsofinterestandsuchotherrelevantfactorsthattheNominatingCommitteeconsidersappropriateinthecontextoftheneedsoftheBoard.AllcandidatesareconsideredinlightoftheneedsoftheBoardwithdueconsiderationgiventotheforegoingcriteria.AlthoughtheBoarddoesnothaveaformaldiversitypolicy,theNominatingCommitteeandBoardreviewthesefactors,includingdiversityofgender,race,ethnicity,age,culturalbackgroundandprofessionalexperience,inconsideringcandidatesforBoardmembership.

BOARD EVALUATION PROCESS

TheNominatingCommitteewillcoordinateanannualself-assessmentoftheBoard’sperformance,aswellastheperformanceofeachcommitteeoftheBoard,theresultsofwhichwillbediscussedwiththefullBoardandeachcommittee.Weexpectthatthefirstannualself-assessmentoftheBoardanditscommitteeswilloccurinfiscal2020.TheassessmentwillincludeareviewofanyareasinwhichtheBoardormanagementbelievestheBoardcanmakeabettercontributiontotheCompany.TheNominatingCommitteewillutilizetheresultsofthisself-evaluationprocessinassessinganddeterminingthecharacteristicsandcriticalskillsrequiredofprospectivecandidatesforelectiontotheBoardandmakingrecommendationstotheBoardwithrespecttoassignmentsofBoardmemberstovariouscommittees.

SUCCESSION PLANNING

TheBoard,withinputfromtheNominatingCommitteeortheCompensationCommittee,asapplicable,periodicallyreviewssuccessionplansfortheChiefExecutiveOfficerandotherseniormanagementpositions,includingintheeventofunanticipatedvacanciesinthoseoffices.Inaddition,theBoard,ledbytheCompensationCommittee,isresponsiblefordeterminingthatasatisfactorysystemisineffectfortheeducation,developmentandorderlysuccessionofseniorandmid-levelmanagersthroughouttheCompany.

STOCKHOLDER COMMUNICATIONS WITH THE BOARD

AnystockholderorotherinterestedpartiesdesiringtocommunicatewiththeBoard,theChairmanoftheBoard,acommitteeoftheBoardoranyoftheindependentdirectorsindividuallyorasagroupregardingtheCompanymaydirectlycontactsuchdirectorsbydeliveringsuchcorrespondencetotheCompany’sChiefLegalOfficeratIAA,Inc.,TwoWestbrookCorporateCenter,Suite500,Westchester,Illinois60154.OurChiefLegalOfficerreviewsallsuchcorrespondenceandforwardstotheapplicabledirector(s)copiesofallsuchapplicablecorrespondence.However,certainitemsunrelatedtotheBoard’sdutiesandresponsibilities,suchasspam,junkmail,massmailings,solicitations,resumesandemploymentinquiriesandsimilaritemswillnotbeforwarded.Inaddition,ifrequestedbystockholders,whenappropriate,theChairmanoftheBoardwillalsobeavailableforconsultationanddirectcommunicationwithstockholders.

19

TABLE OF CONTENTS

EXECUTIVE SESSIONS

TheindependentdirectorsoftheCompanymeetinexecutivesessionateveryregularlyscheduledBoardmeeting.TheCorporateGovernanceGuidelinesstatethattheChairmanoftheBoard(ifanindependentdirector)ortheLeadIndependentDirector(iftheChairmanoftheBoardisnotanindependentdirector)shallpresideatsuchexecutivesessions,orinsuchdirector’sabsence,anotherindependentdirectordesignatedbytheChairmanoftheBoardortheLeadIndependentDirector,asapplicable.Currently,Mr.Larson,ourindependentChairman,presidesattheexecutivesessionsofourindependentdirectors.

20

TABLE OF CONTENTS

CORPORATE RESPONSIBILITY AND ENVIRONMENTALSUSTAINABILITY

Werecognizethatcorporatesocialresponsibilityandsustainablebusinesspracticesarecriticallyimportanttothelong-terminterestsofourstockholdersandotherstakeholders.Topromotetheseinterests,wearecommittedtoresponsiblebusinesspracticesandcontinualimprovementofouroperationsandourrelationshipswithouremployees,ourcustomersandthecommunitiesinwhichweoperate.Whilewearestillintheearlystages,wearealsocommittedtoenhancedtransparency,andbestpracticesin,ourcorporateresponsibilityandsustainabilitypoliciesandpractices.Belowaresomeofthewaysinwhichwedemonstrateourcommitmenttotheenvironment,ouremployeesandcommunities,andresponsiblegovernance.

Commitment to the Environment

Circular Economy

TheCircularEconomyisanever-evolvingandfast-growingsystemthatcentersontheideaofredesigningproductionandconsumption,eliminatingwaste,andmakingcontinualuseofresources.Thissystemdiffersfrommoretraditionaleconomicmodelsinwhichaproductiscreated,used,anddisposedof,orsenttoawastecollectionfacility,whenitsusefullifeostensiblyconcludes.Simplyput,theCircularEconomycentersonkeepingproductsandmaterialsinuse,andextendingtheirutilitytomaximizeenvironmentalandeconomicbenefitsofthoseproductsandmaterials.CircularEconomybusinessstrategieshavecontinuedtospreadtovirtuallyallproductcategories,includingtheautomobileindustry.

IAA’s Role

Automobilesplayanimportantroleintheeconomyandareconsumedonasignificantscale,resultingintheconsumptionofvastamountsofsociety’srawmaterials.Theabilitytoreuseand/orrecyclethematerialscommonlyfoundinvehiclescanhelptomitigatethesignificantimpactthesourcingofnewmaterialshaveontheenvironment.IAAprocessesover2millionvehiclesannuallythroughtheautomotiveCircularEconomytobuyersandrecyclers,viaitsautomobileauctionbusinessmodel,givingthemsecondlivesandbeyond,aswellasarenewedpurpose,insteadofendingthecycleprematurelyinalandfill.ThroughIAA’sbusiness,thosevehiclesareabletoreachtheirhighest,bestandmultipleuses,minimizingnegativeenvironmentalimpact.

IAAbelievesthatwhenavehicleisattheendofitsinitiallifeforanowner,thatvehicleshouldcirculatetoanotherowner,whocanthenbeginthenextphaseofthatvehicle’slife.Inpracticalterms,thatmeansgettingthevehicletoanewownerwhowill:Refurbish,repair,orremanufacturethevehicleforfutureuse;Reusethevehicleanditscomponents;or,Recyclewhatevercannotbereturnedtoservice.

Thisprocessofputtingvehiclestoasecondusealsoeliminatestheneedtoextractnewrawmaterialsfromtheenvironment,whichwouldotherwisebenecessarytobuildanewvehicle.Thesameistrueforautomobileparts.Keepingavehicleoritspartsinuse,orreusingthosevehiclesorparts,savesonenergy,greenhousegas(“GHG”)emissions,andwateruse,andtherebyhelpstomitigateclimatechange,byreducingtheneedtomanufacturenewvehicleparts.Thisreusealsoreduceswaste,andtheimpactfromautomobilesdegradingandleachingpotentiallyharmfulsubstancesintotheenvironment.

Finally,IAA’sdigitizationoftheauctionprocessisanothersuchenvironmentallyresponsiblesolution.IAAhasrapidlyconvertednearlyallauctionstovirtualauctionswiththegoalofminimizing,andpotentiallyeliminating,theneedforanyphysicalattendanceattheauctions.Virtualauctionseliminatetheneedtotransportthevehicleoutofstoragefordisplayandeliminatestherequirementthatbiddersphysicallydrivetoauctionsites,bothofwhichresultinloweredGHGemissionsandsaveonenergyandwateruse.Inaddition,duringthecurrentCOVID-19pandemic,digitizationoftheauctionprocessreducestherisktobuyersoftravelingtoauctionsandinteractingwithotherbuyers.

Commitment to Social ResponsibilityWebelievethatsociallyresponsiblepractices,includingbeingagoodemployertoouremployees,beinggoodpartnerswithourcustomersandbeinggoodneighborswithinourcommunities,gohandinhandwithgeneratingvalueforourstockholders.

21

TABLE OF CONTENTS

Tothatend,IAAfocusesonthefollowingissues:

Human Capital Management:IAAiscommittedtopromotingthehealth,wellness,andfutureofouremployees.• Recruitment & Retention:IAA’sbusinessdependsonhavingcapablepeoplefocusedonexcellenceintheir

respectivecapacities,whethertheyservicetheinternalneedsofthecompany,orIAA’sclients;

• Diversity & Inclusion:IAAparticipatesinprogramslikeWomeninTech,providestrainingtoallemployeesonissuessuchasunconsciousbias,andplacesastrongemphasisondiversityinallareasofthecompany,includingthosepersonsservingonitsBoardofDirectors,asdemonstratedinthe“BoardComposition”sectionof“ProposalNo.1–ElectionofDirectors”inthisProxyStatement;and

• Employment Practices:IAAisanemployerofchoiceandpayshighlycompetitivesalaries,includingforentry-levelpositionsaswellasexecutivesandotherleaders.IAAalsoprovidesexcellenthealthandwellnessbenefits,includinghealthinsurance,sickandpersonaltimeoff,andaccesstoanemployeeassistanceprogram.

Workplace Safety:IAAisproudofitsexemplaryrecordofworkplacesafety.IAAbelievesthesafetyofitsemployeesisimperativetoitslong-termsuccess.Assuch,IAAregularlytrainsitsemployeesintheareasofsafetyandemergencypreparedness.IAAcomplieswith,andinmanycasesexceeds,allOSHAregulations,aswellasallrelevantgovernmentalregulatorystandards.

Data security & Customer Privacy:IAAtakesthesecurityofitscustomers’dataseriously.Forexample,IAAcollectsandretainstheminimumamountofinformationnecessary,andthensafeguardsitwithutmostcareandstate-of-the-artsystems.IAA’semployeesandcustomersareprotectedbyIAA’scommitmenttothisdatasecurity.

Our Communities:Weencourageeveryoneinourorganizationtovolunteertheirtimeanddonateastheydeemappropriatetolocal,andinsomecasesnational,charitablecauses.IAAemployeesgenerouslygivetheirtimetohelpthosecharities,andthepeoplethoseorganizationsserve.Withthecurrentpandemic,wehaveseenourpeopledotheirpartinresponsetoCOVID-19,byturningoldIAAuniformsintofacemaskstodistributeinthecommunity,andbymakingfaceshieldsanddonatingthemtolocalhospitalstohelpprotectthefrontlinenursesanddoctorscaringforimpactedpatients.

Asacorporateorganization,IAAhassponsoredanumberofnationalcharitiesfocusedonthehealthandwell-beingofthoseinneed.IAAalsohasaDonationDivisionfocusedonturningdonatedvehiclesintocashthatfundstheoperationsandmissionsofhundredsofworthycauses.Lastly,IAAhasadedicatedCatastropheResponseTeam(the“CATTeam”),whichworksonbehalfofourinsurancecustomerstorespondtotheneedsofcommunitiesaroundthecountriesasindividualsimpactedbycatastrophesworktoputtheirlivesbacktogetherfromthedestructionthattheyfaced.Oureffortsaidthefirstrespondersandstateandlocalgovernmentsbyremovingdamagedvehiclesfromtherecoveryareasandstoringthematourlocationsuntiltheyaresold.

Commitment to Governance and Transparency: IAAiscommittedtoadheringtoahighlevelofcorporategovernanceandtransparencywithrespecttoitsenvironmental,sustainabilityandcorporatesocialresponsibilitypractices.TheRiskCommitteeofourBoardisresponsibleforoverseeingandmonitoringourenvironmentalpoliciesandpractices,includingourassessmentofclimate-relatedrisksandopportunitiesassociatedwithourbusinesspractices.TheCompensationCommitteeofourBoardisresponsibleforoverseeingourhumancapitalmanagementinitiatives,includingemployeeretentionandengagement,talentdevelopmentanddiversityandinclusion.ThesecommitteesareexpectedtoprovideperiodicreportstotheBoardonthesematters.Wealsohaveaninternal,cross-functionalteam,ledbyourChiefLegalOfficer,thatadvisesourmanagement,andreportstotheBoard,onmattersrelatedtotheCompany’senvironmental,sustainabilityandsocialresponsibilityinitiativesanddevelopspoliciesandproceduresdesignedtopromotetheachievementoftheseinitiatives.

IAAstrivestomeetinvestorexpectationsandenhanceitsreportingtostockholdersregardingitscorporatesocialresponsibilityandsustainabilitypoliciesandpractices.Tofurthertheseefforts,IAAiscommittedtoincorporatingdisclosuresinafuturepublishedsustainabilityreportthatalignswithleadingreportingframeworks,includingrelevantSustainabilityAccountingStandardsBoard(SASB)standards.ToremaintransparentaboutitsongoingESGefforts,IAAwillbeupdatingitswebsitetoincludemoreinformationaboutIAA’senvironmental,sustainabilityandcorporatesocialresponsibilitypoliciesandpractices.

22

TABLE OF CONTENTS

EXECUTIVE OFFICERS Thefollowingtablepresentsinformationregardingourcurrentexecutiveofficers.TheinformationiscurrentasofthedateofthisProxyStatement.

Name Age Position

JohnW.Kett 56 President,ChiefExecutiveOfficerandDirector

VanceJohnston 51 ExecutiveVicePresidentandChiefFinancialOfficer

TimO’Day 57 President,U.S.Operations

SidneyPeryar 45ExecutiveVicePresident,ChiefLegalOfficerandSecretary

MajuAbraham 44 SeniorVicePresidentandChiefInformationOfficer

InformationonthebusinessbackgroundofJohnW.Kettissetforthaboveunder“Proposal1:ElectionofDirectors.”

Vance JohnstonhasservedasExecutiveVicePresidentandChiefFinancialOfficerofIAAsinceApril2019.Mr.JohnstonservedasExecutiveVicePresident,ChiefFinancialOfficerandTreasurerofSPPlusCorporationfromMarch2014toApril2019.Mr.JohnstonalsoheldvariouspositionswithFurnitureBrandsInternational,Inc.betweenMarch2010andDecember2013,includingChiefFinancialOfficerfromMay2012toDecember2013.HewasChiefFinancialOfficerofFurnitureBrandsInternational,Inc.whenitfiledforprotectionunderChapter11ofthebankruptcycodeonSeptember9,2013.Priortothat,hewasChiefFinancialOfficerofMiamiJewishHealthSystemsfromMarch2009toMarch2010andVicePresident,CorporateStrategyofRoyalCaribbeanCruises,Ltd.fromDecember2005toAugust2009.Healsoheldvariouspositionsinstrategy,financeandoperationsatOfficeMaxfrom2002to2005andBurgerKingCorp.from2001to2002.Mr.JohnstonholdsanMBAfromtheUniversityofChicago’sBoothSchoolofManagementandabachelor’sdegreeinbusinessadministrationandmanagementfromUniversityofSanDiego.

Tim O’Day hasservedasPresident,U.S.OperationsofIAAsinceJune2019.Mr.O’DayjoinedIAAinSeptember2015asSeniorVicePresidentofFinance,apositionhehelduntilJune2019.PriortojoiningIAA,Mr.O’DaywasChiefOperatingOfficerandChiefFinancialOfficerofMedSpeed,anationalhealthcaretransportationandlogisticsprovider,from2007to2015.HewasfounderandpresidentofCoasttoCoastCopiers,aB2Binternettechnologycompany,from2003to2006.HealsoservedasPresidentofBraunEvents,aregionalspecialeventcompany,from2000to2003,FinancialOfficerofRentalMax,anequipmentrentalchain,from1998to2000andDirectorofFinanceofVistarAutoglass,anationalautoglasscompany,from1994to1997.Mr.O’DayservedinvariousfinancialmanagerialpositionsatAbbottLaboratoriesfrom1985to1994.Mr.O’Dayholdsabachelor’sdegreeinbusinessfromIndianaUniversity.

Sidney PeryarhasservedasExecutiveVicePresident,ChiefLegalOfficerandSecretaryofIAAsinceJune2019.Mr.PeryarpreviouslyservedasSeniorVicePresident,GeneralCounselandSecretaryofIAAfromFebruary2017toJune2019.Mr.PeryarfirstjoinedIAAinApril2001asCorporateCounsel.In2002,Mr.PeryarbecameanexecutiveofficerofIAA,servingasVice-President,CorporateCounselandSecretary,apositionhehelduntilOctober2004.FromOctober2004throughFebruary2017,Mr.PeryarservedasVicePresident,GeneralCounselandSecretaryofIAA.PriortojoiningIAA,Mr.PeryarservedasanattorneyatFairbank&Vincent.Mr.PeryarholdsanMBAfromNorthwesternUniversity’sKelloggGraduateSchoolofManagement,aJ.D.fromVanderbiltUniversitySchoolofLawandabachelor’sdegreefromAuburnUniversity.

23

TABLE OF CONTENTS

Maju AbrahamhasservedasSeniorVicePresidentandChiefInformationOfficerforIAAsinceJune2019.Mr.AbrahampreviouslyservedasVicePresidentofBusinessTechnologyofIAAfromSeptember2014toJune2019.FromDecember2010throughSeptember2014,Mr.AbrahamservedasDirectorofBusinessTechnologyatIAAandpriortothat,heldvariousothertechnologyrolesatIAAfromJuly2005toDecember2010.Mr.AbrahamalsoworkedatAccubyteInc.fromAugust2002toJuly2005andDiamondInfoTechfrom1996to2002.Mr.Abrahamholdsabachelor’sdegreeineconomicsfromMahatmaGandhiUniversity.

24

TABLE OF CONTENTS

DIRECTOR COMPENSATION OurdirectorcompensationprogramwasestablishedatthetimeoftheSpin-OffandwasmodeledoffoftheKARdirectorcompensationprogram.Weuseacombinationofcashandstockbasedincentivecompensationtoattractandretainindependent,qualifiedcandidatestoserveontheBoard.TheBoardmakesalldirectorcompensationdeterminationsafterconsideringtherecommendationsoftheNominatingCommittee.TheNominatingCommitteeintendstoreviewdirectorcompensationannually,assistedperiodicallybyanindependentcompensationconsultant(mostrecentlybyClearBridgeinJuly2019inconnectionwiththeSpin-Off).ThecurrentdirectorcompensationprogramforIAAissetforthbelow.

CASH AND STOCK RETAINERS

Components of Director Compensation Program For 2019 Annual Service Annual Amount Form of Payment(1)

AnnualCashRetainer(2) $85,000 Cash

AnnualStockRetainer(3) $130,000 RestrictedStock

ChairmanoftheBoardCashRetainer $45,000 Cash

ChairmanoftheBoardStockRetainer $65,000 RestrictedStock

AuditCommitteeChairFee $25,000 Cash

CompensationCommitteeChairFee $20,000 Cash

NominatingCommitteeandRiskCommitteeChairFee $10,000 Cash

AuditCommitteeMembershipFee $7,500 Cash

(1) Mayelecttoreceiveannualcashretainerinsharesofourcommonstock.(2) One-fourthoftheannualcashretainerispaidatthebeginningofeachquarter,providedthatthedirectorservedasadirectorin

suchfiscalquarter.(3) PursuanttoourPolicyonGrantingEquityAwards,unlessspecificallyprovidedotherwisebytheCompensationCommitteeor

theBoard,annualgrantsfordirectorsareeffectiveonthedateoftheannualmeetingatwhichthedirectorwaselectedorre-elected.One-fourthoftheannualrestrictedstockgrantvestsquarterlyfollowingthedateofthegrant.Thenumberofsharesofourcommonstockreceivedisbasedonthevalueofthesharesonthedateoftherestrictedstockgrant.

25

TABLE OF CONTENTS

DIRECTORS DEFERRED COMPENSATION PLAN

OurBoardadoptedtheIAA,Inc.DirectorsDeferredCompensationPlan(the“DirectorDeferredCompensationPlan”)inJune2019.PursuanttothetermsoftheDirectorDeferredCompensationPlan,eachnon-employeedirectormayelecttodeferthereceiptofhisorhercashdirectorfeesintoapre-taxinterest-bearingdeferredcompensationaccount,whichaccountaccruesinterestasdescribedintheDirectorDeferredCompensationPlan.AmountsundertheDirectorDeferredCompensationPlanmayalsobeinvestedinthesameinvestmentchoicesasareavailableunderour401(k)plan.Non-employeedirectorsalsomaychoosetoreceivealloraportionoftheirannualstockretainerintheformofadeferredshareaccount.TheDirectorDeferredCompensationPlanprovidesthattheamountofcashinadirector’sdeferredcashaccount,plusthenumberofsharesofourcommonstockequaltothenumberofsharesinthedirector’sdeferredshareaccount,willbedeliveredtoadirectorininstallmentsoveraspecifiedperiodorwithin60daysfollowingthedateofthedirector’sdeparturefromtheBoard,withcashbeingpaidinlieuofanyfractionalshares.

DIRECTOR STOCK OWNERSHIP AND HOLDING GUIDELINES

TheCompany’snon-employeedirectorsaresubjecttotheCompany’sdirectorstockownershipandholdingguidelines.Thestockholdingguidelinerequireseachnon-employeedirectortoholdanysharesoftheCompany’scommonstockgrantedbytheCompanyforatleastthreeyearspost-vestingwhileservingasadirector,subjecttocertainexceptionsapprovedbytheNominatingCommittee.

TheCompany’sstockownershipguidelinerequireseachnon-employeedirectortoownaminimumoffivetimeshisorherannualcashretaineramountinsharesofCompanystock.Allnon-employeedirectorsareworkingtowardsthiscompliance.

DIRECTOR COMPENSATION PAID IN 2019

Thefollowingtableprovidesinformationregardingthefiscal2019compensationpaidtoournon-employeedirectors:

Name

Fees Earned or Paid in

Cash(1)Stock

Awards(2) Total

JohnP.Larson $107,500 $185,000 $292,500

BrianBales $51,250 $130,000 $181,250

William(Bill)Breslin $42,500 $130,000 $172,500

SueGove $55,000 $130,000 $185,000

LynnJolliffe $95,000 $130,000 $225,025

PeterH.Kamin $51,250 $130,000 $181,250

OlafKastner $42,500 $130,000 $172,500

GailEvans(2020Boardmember) — — —

(1) TheamountsforMs.JolliffeandMr.LarsonincludecashandequityfromKARpriortotheSpin-OffbecausetheyweremembersoftheKARboardofdirectorspriortotheSpin-Off.TheamountsforallotherdirectorsrepresentcashandequityearnedorawardedaftertheSpin-Off.

(2) Theamountsrepresenttheaggregategrantdatefairvalue,computedinaccordancewiththeFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718(“ASC718”),ofsharesofrestrictedstockawardedtoeachnon-employeedirectorasanannualstockretainer.ThereportedawardvalueshavebeendeterminedusingtheassumptionsdescribedinNote5totheconsolidatedfinancialstatementsincludedinIAA’s2019AnnualReport.Allnon-employeedirectorsexceptMs.JolliffeandMr.Larsonreceived2,140sharesofrestrictedstockasanannualstockretainerinJuly2019.Ms.JolliffeandMr.LarsondidnotreceiveanannualstockretainerfromIAAinJuly2019becausetheyhadpreviouslybeengrantedanannualstockretainerfromKARpriortotheSpin-Off,howeverMr.Larsonwasgranted1,384sharesofrestrictedstockinJuly2019ashisannualChairmanstockretainer.PursuanttotheDirectorDeferredCompensationPlan,Mr.Larsonelectedtoreceive100%ofhisannualstockretainerinadeferredshareaccount.

26

TABLE OF CONTENTS

Mr.KettwasnotentitledtoreceiveanyfeesorothercompensationforservingasamemberofourBoardin2019becausehewasemployedbytheCompany.

OUTSTANDING DIRECTOR RESTRICTED STOCK AWARDS

Thefollowingtablesetsforthinformationregardingthenumberofunvestedordeferredsharesofourcommonstockheldbyeachnon-employeedirectorasofDecember29,2019:

Name Unvested Shares(1)Deferred Phantom

Shares(2)

JohnP.Larson 3,614 11,035

BrianBales 2,076

William(Bill)Breslin 2,076

SueGove 2,076

LynnJolliffe 2,230 6,629

PeterH.Kamin 2,076

OlafKastner 2,076

GailEvans(3) — —

(1) Thisnumberrepresentsunvestedsharesofrestrictedstockand,forthosedirectorswhodeferred,unvestedphantomstockanddividendequivalents.

(2) Thisnumberrepresentsvestedphantomstockwhicharedeferredineachdirector’saccountpursuanttotheDirectorDeferredCompensationPlan.Theseshareswillbesettledforsharesofourcommonstockonaone-for-onebasis.

(3) GailEvansjoinedtheBoardonFebruary5,2020.

27

TABLE OF CONTENTS

BENEFICIAL OWNERSHIP OF THE COMPANY’S COMMON STOCK

ThefollowingtablesetsforthcertaininformationwithrespecttothebeneficialownershipofourcommonstockasofApril1,2020by:(1)eachpersonorentitywhoownsofrecordorbeneficiallyownsmorethan5%ofanyclassoftheCompany’svotingsecurities;(2)eachofourdirectors,directornomineesandnamedexecutiveofficers;and(3)allofourcurrentdirectors,directornomineesandexecutiveofficersasagroup.BeneficialownershipisdeterminedinaccordancewiththerulesoftheSEC.Toourknowledgeandsubjecttoapplicablecommunitypropertylaws,eachstockholderhassolevotingandinvestmentpowerwithrespecttothesharesofourcommonstockindicatedasbeneficiallyowned,unlessotherwiseindicatedinafootnotetothefollowingtable.Thepercentagecalculationsbelowarebasedon133,941,388sharesofourcommonstockoutstandingasofApril1,2020.

Shares Beneficially Owned

Name of Beneficial Owner

Number of Shares(1)

Percent of Class(2)

5% BENEFICIAL OWNERS TheVanguardGroup(3) 12,341,382 9.2%

NAMED EXECUTIVE OFFICERS, DIRECTORS AND DIRECTOR NOMINEES JohnW.Kett 86,867 *

VanceJohnston(4) 5,802 *

TimO’Day 7,360 *

SidneyPeryar 15,665 *

MajuAbraham 2,490 *

JohnP.Larson(5) 12,419 *

BrianBales(5) 2,768 *

WilliamBreslin(5) 3,792 *

GailEvans(5) 1,127 *

SueGove(5) 2,768 *

LynnJolliffe(5) 6,629 *

PeterKamin(5) 2,768 *

OlafKastner(5) 2,560 *

CURRENT EXECUTIVE OFFICERS, DIRECTORS AND DIRECTOR NOMINEES AS A GROUP (13 persons) 153,015 *

* Lessthanonepercent(1) Thenumberofsharesincludessharessubjecttorestrictedstockawards,deferredstockunitsaswellassharessubjectto

restrictedstockunits(“RSUs”)scheduledtovestwithin60daysofApril1,2020.(2) SharessubjecttoRSUsscheduledtovestwithin60daysofApril1,2020areconsideredoutstandingforthepurposeof

determiningthepercentoftheclassheldbytheholderofsuchaward,butnotforthepurposeofcomputingthepercentageheldbyothers.

(3) BasedsolelyoninformationdisclosedinaSchedule13GfiledbyTheVanguardGrouponFebruary11,2020.AccordingtothisSchedule13G,TheVanguardGrouphassolevotingpowerwithrespectto76,658shares,soledispositivepowerwithrespectto12,259,047shares,sharedvotingpowerwithrespectto23,188sharesandshareddispositivepowerwithrespectto82,335sharesofourcommonstock.TheSchedule13GalsodisclosesthattheVanguardFiduciaryTrustCompany(“VFTC”),awholly-ownedsubsidiaryofTheVanguardGroup,Inc.,isthebeneficialownerof59,147sharesofourcommonstockandVanguardInvestmentsAustralia,Ltd.(“VIA”),awholly-ownedsubsidiaryofTheVanguardGroup,Inc.,isthebeneficialownerof40,699sharesofourcommonstock.VFTCandVIAserveasinvestmentmanagerofcollectivetrustaccountsandinvestmentmanagerofAustralianinvestmentofferingsforTheVanguardGroup,respectively.TheaddressofTheVanguardGroupis100VanguardBlvd.,Malvern,Pennsylvania19355.

(4) Includes5,802sharessubjecttoRSUsthatarescheduledtovestwithin60daysofApril1,2020.(5) Includessharesofcommonstocksubjecttorestrictedstockawardsasfollows:Mr.Larson(1,384shares),Mr.Bales(1,384

shares),Mr.Breslin(1,384shares),Ms.Evans(1,127shares),Ms.Gove(1,384shares),Mr.Kamin(1,384shares)andMr.Kastner(1,384shares),andsharesofcommonstocksubjecttodeferredstockunitsasfollows:Mr.Larson(11,035shares)andMs.Jolliffe(6,629shares).

28

TABLE OF CONTENTS

PROPOSAL NO. 2: ADVISORY VOTE TO APPROVE THECOMPENSATION OF OUR NAMED EXECUTIVE OFFICERS

GENERAL

Weareprovidingourstockholderswiththeopportunitytocastanon-binding,advisoryvoteonthecompensationofournamedexecutiveofficersasdisclosedpursuanttotheSEC’sexecutivecompensationdisclosurerulesandsetforthinthisProxyStatement(includinginthecompensationtablesandnarrativesaccompanyingthosetablesaswellasintheCompensationDiscussionandAnalysis).

AsdescribedbelowinthisProxyStatement,ourexecutivecompensationprogramisstructuredtoattract,motivate,andretainhighlyqualifiedleadersbyrewardingthemthroughacompetitiveandbalancedoffering.Ourfocusisonperformance-basedcomponentsthatalignourexecutiveswithIAA’ssuccessandtheirdirectcontributionstothatsuccess.Webelievethatexecutivecompensationshouldcreateadirectlinkbetweendeliveringperformanceandcreatingshareholdervalue.

InaccordancewiththerequirementsofSection14AoftheExchangeActandtherelatedrulesoftheSEC,ourBoardwillrequestyouradvisoryvoteonthefollowingresolutionattheAnnualMeeting:

RESOLVED,thatthecompensationpaidtothenamedexecutiveofficers,asdisclosedinthisProxyStatementpursuanttotheSEC’sexecutivecompensationdisclosurerules(whichdisclosureincludestheCompensationDiscussionandAnalysis,thecompensationtablesandthenarrativediscussionthataccompaniesthecompensationtables),isherebyapproved.

ThisproposalonthecompensationpaidtoournamedexecutiveofficersisadvisoryonlyandwillnotbebindingonIAA,theBoardortheCompensationCommittee,andwillnotbeconstruedasoverrulingadecisionby,orcreatingorimplyinganyadditionalfiduciarydutyfor,IAA,theBoardortheCompensationCommittee.However,theCompensationCommittee,whichisresponsiblefordesigningandadministeringIAA’sexecutivecompensationprogram,valuestheopinionsexpressedbystockholdersintheirvoteonthisproposalandwillconsidertheoutcomeofthevotewhenmakingfuturecompensationdecisionsfornamedexecutiveofficers.Inaddition,assumingourstockholdersvote“1YEAR”asthepreferredfrequencyoptionforfutureadvisoryvotesonexecutivecompensationinProposalNo.3below,weexpecttoholdournextadvisoryvotetoapprovethecompensationofournamedexecutiveofficersatour2021annualmeetingofstockholders.

VOTE STANDARD

Approval,onanadvisorybasis,ofthecompensationofournamedexecutiveofficersrequirestheaffirmativevoteofamajorityofthesharesofcommonstockrepresentedattheAnnualMeetingandentitledtovoteonProposalNo.2.Abstentionswillhavethesameeffectasavote“AGAINST”ProposalNo.2.Brokernon-voteswillnotbecountedindeterminingtheoutcomeofProposalNo.2.

✔ The Board recommends that you vote “FOR” the advisory vote toapprove the compensation of our named executive officers.

Proxies solicited by the Board will be voted “FOR” the advisory vote to approve the compensation ofour named executive officers unless stockholders specify a contrary vote.

29

TABLE OF CONTENTS

COMPENSATION DISCUSSION AND ANALYSIS

OVERVIEW

Thefollowingdiscussionandanalysisofourcompensationprogramfornamedexecutiveofficersshouldbereadinconjunctionwiththetablesandtextelsewhereinthisproxystatementthatdescribethecompensationawardedandpaidtothenamedexecutiveofficers.

Named Executive OfficersOurnamedexecutiveofficersforthelastcompletedfiscalyearwere(i)ourChiefExecutiveOfficer;(ii)ourChiefFinancialOfficer;and(iii)eachofthethreeothermosthighlycompensatedexecutiveofficerswhowereservingasexecutiveofficersattheendofthelastcompletedfiscalyear.Ournamedexecutiveofficersare:

Name Title

John W. Kett ChiefExecutiveOfficer

Vance Johnston ChiefFinancialOfficer

Tim O’Day President,U.S.Operations

Sidney Peryar ExecutiveVicePresidentandChiefLegalOfficer

Maju Abraham SeniorVicePresidentandChiefInformationOfficer

This Compensation Discussion and Analysis is organized into five sections:

• Executive Summary (page 30)

• Compensation Philosophy and Objectives (page 34)

• The Role of the Compensation Committee and the Executive Officers in Determining ExecutiveCompensation (page 34)

• Elements Used to Achieve Compensation Philosophy and Objectives (page 36)

• Compensation Policies and Other Information (page 44)

EXECUTIVE SUMMARY

OnJune28,2019,wewerespun-offfromKARandbecameastand-alonepubliccompany.Asanindependentcompany,webelievewewillcontinuetobealeaderinthesalvageauctionindustry,andwebelieveourenhancedstrategicfocusandastreamlinedoperatingstructurewillallowustomaximizelong-termvalueforourstockholdersbybuildingonourcorestrengths.

Thisisourfirstproxystatementandourfirstopportunitytoexplainourcompensationprogramandphilosophytoourstockholders.Ourcompensationdecisionsfor2019needtobeunderstoodinthecontextoftheSpin-Off.PriortotheSpin-Off,thecompensationdecisionsforournamedexecutiveofficersweremadebyKAR.AftertheSpin-Off,thecompensationdecisionsforournamedexecutiveofficersweremadebyourCompensationCommittee,whichiscomprisedsolelyofindependentdirectors.WhilewediscussthecompensationdecisionsthatweremadebyKARpriortotheSpin-Offtogivecontexttothecompensationreceivedbythenamedexecutiveofficersfor2019,thiscompensationdiscussionandanalysisisintendedtofocusonthecompensationdecisionsmadebyourCompensationCommitteefollowingtheSpin-Offandourgo-forwardcompensationprogramandphilosophy.

Asdescribedinmoredetailbelow,upontheSpin-Off,outstandinglong-termequityawardsoriginallygrantedbyKARtoournamedexecutiveofficersandotheremployeeswereconvertedintoawardswithrespecttoanequalnumberofsharesofourcommonstockandKAR’scommonstock.Forexample,ifanamedexecutiveofficerwasgrantedastockoptionawardcovering1,000KARsharesbeforetheSpin-Off,thisoptionawardwasequitablyadjustedintoastockoptionawardcovering1,000KARsharesand1,000IAAsharesaftertheSpin-Off(andtheoptionexercisepricewasalsoequitablyadjustedtomaintainthesameeconomicvalueoftheoptionawardbefore

30

TABLE OF CONTENTS

andaftertheSpin-Off).Similarly,ifanamedexecutiveofficerwasgrantedarestrictedstockunitawardcovering1,000KARsharesbeforetheSpin-Off,thisrestrictedstockunitawardwasequitablyadjustedintoarestrictedstockunitawardcovering1,000KARsharesand1,000IAAsharesaftertheSpin-Off.AlloftheseadjustedKARequityawardsheldbyournamedexecutiveofficersandotheremployeeswillcontinuetovestsubjecttotheemployee’scontinuedemploymentwithusandachievementoftheapplicableperformance-vestingrequirements.

FollowingtheSpin-Off,wealsograntednewlong-termequityawardstoournamedexecutiveofficersandotheremployeesunderournew2019OmnibusStockandIncentivePlan(the“2019EquityPlan”)thatwasestablishedinconnectionwiththeSpin-Off.Grantsbyusunderour2019EquityPlanwereapprovedbyourCompensationCommitteeandrelatesolelytosharesofourcommonstock.ThesenewawardsandtheadjustedKARequityawardsarebothdiscussedinthiscompensationdiscussionandanalysisandtheaccompanyingcompensationtablesandnarrativediscussionsthatfollow.

FollowingtheSpin-Off,eachnamedexecutiveofficerwaseligibletoearnanannualincentivepaymentunderourAnnualIncentiveProgramthatwasestablishedunderour2019EquityPlan.Whileeachnamedexecutiveofficerwasoriginallyawardeda2019incentivepaymentopportunitybyKARpriortotheSpin-Off,inconnectionwiththeSpin-Off,ourCompensationCommitteeestablishednewperformancetargetsfortheCompanyonastand-alonebasis.Performanceagainstthesenewstand-alonetargetsestablishedbyourCompensationCommitteedeterminedtheamountofeachnamedexecutiveofficer’sannualincentivepaymentfor2019thatisdescribedbelow.

WealsoenteredintonewemploymentagreementswitheachofournamedexecutiveofficersfollowingtheSpin-Off.ThesenewagreementsreplacedanyprioremploymentagreementsthatwereinplacewhiletheexecutiveswereemployedbyKAR.ThetermsofthesenewemploymentagreementswereapprovedbyourCompensationCommitteeandtheseagreementswereintendedtoretainourleadershipteamfollowingtheSpin-Off.

2019 Financial Highlights (Dollars in Millions)

Net revenue was up 8% to$1,436.8 million.

Operating profit increased 12%to $317.8 million.

31

TABLE OF CONTENTS

Achieved net income of$193.2 million, an increaseof 5%.

Adjusted EBITDA* rose 7% to$411.7 million. *AdjustedEBITDAisanon-GAAPmeasureandisdefinedandreconciledtothemostcomparableGAAPmeasure,netincome,inAppendixA.

32

✔ Pay for performance: Ourannualincentiveprogramis100%performance-basedandourequityincentiveprogramisheavilyperformance-based.Ourfirstannuallong-termequitygrantsin2020consistedofatleast50%PRSUs.

✔ Independent Compensation Committee: AllofthemembersofourCompensationCommitteeareindependentunderNYSErules.

✔ Independent compensation consultant: TheCompensationCommitteeretainsitsownindependentcompensationconsultanttoevaluateandreviewourexecutivecompensationprogramandpractices.

✔ Maximum payout caps: TheCompensationCommitteesetsmaximumamountsthatmaybepayableforannualcashincentivecompensationandPRSUs.

✔ Clawback policy for financial misconduct: Ourclawbackpolicyprovidesfortherecoveryandcancellationofincentivecompensationofanexecutiveofficerintheeventwearerequiredtoprepareanaccountingrestatementduetosuchexecutiveofficer’sintentionalmisconduct.

✔ Severance benefits for qualifying termination:Severancebenefitsforterminationwithoutachange-in-controlaretwotimesbasesalaryandtargetbonusfortheCEOand1.5timesbasesalaryandtargetbonusfortheCFO,President,U.S.Operations,andCLO,andonetimesbasesalaryandtargetbonusforotherexecutiveofficers.ChangeincontrolseverancebenefitsarethreetimesbasesalaryandtargetbonusfortheCEOand2.5timesbasesalaryandtargetbonusfortheCFO,President,U.S.Operations,andCLO,and1.5timesbasesalaryandtargetbonusforotherexecutiveofficers.

✔ “Double-trigger” vesting provisions in equityaward agreements: ForallIAAequitygrants,acceleratedvestingofassumedorreplacedequityawardsuponachangeincontroloftheCompanyisonlypermittedifanexecutiveexperiencesaqualifyingterminationofemploymentinconnectionwithorfollowingsuchchangeincontrol.

✔ Robust equity ownership requirements: Wehavestockownershipguidelinesthatareapplicabletoourexecutiveofficers.ThestockownershipguidelineforourCEOisfivetimeshisannualbasesalary,andtheCEOcurrentlyholdsfivetimeshisannualbasesalary.Thestockownershipguidelineforourothernamedexecutiveofficersisthreetimestheirannualbasesalary.Allexecutiveofficersarerequiredtohold50%ofvestedshares,netoftaxes,untilstockownershipguidelinesaremet.

✘ Provide excessive perquisites: Weprovidealimitednumberofperquisitesthataredesignedtoattractandretainhighlyqualifiedexecutives.

✘ Maintain a defined benefit pension plan: Wedonotmaintainadefinedbenefitpensionplanforourexecutiveofficers.

✘ Allow hedging or pledging of the Company’ssecurities: Weprohibithedging,pledgingandshortsalesofCompanystockbyourdirectorsandexecutiveofficers.

✘ Reprice stock options: Stockoptionexercisepricesaresetequaltothegrantdatemarketpriceandcannotberepricedordiscountedwithoutstockholderapproval.

TABLE OF CONTENTS

Our Executive Compensation Practices are Aligned with Stockholders’ InterestsWeadoptedacompensationprogramstructuredtoachieveacloseconnectionbetweenexecutivepayandCompanyperformance.

WHAT WE DO

WHAT WE DON’T DO

33

TABLE OF CONTENTS

COMPENSATION PHILOSOPHY AND OBJECTIVES

Ourexecutivecompensationprogramisstructuredtoattract,motivate,andretainhighlyqualifiedleadersbyrewardingthemthroughacompetitiveandbalancedoffering.Ourfocusisonperformance-basedcomponentsthatdeliverresultsconsistentwithIAA’ssuccessandensuringtheirdirectcontributionstothatsuccess.Webelievethatexecutivecompensationshouldbealignedtocreateadirectlinkbetweendeliveringperformanceandshareholdervalue.

TheprincipalobjectivesofourpostSpin-Offexecutivecompensationprogramare:

• Becompetitiveinourcompensationpackage,enablingustoattractandretainleadershipandtalentnotonlywithinourindustrybutcomparingacrossparallelindustriesaswell.

• Linkexecutivecompensationwiththeachievementofshort-termandlong-termcompanyobjectives.

• AligntheinterestsofourexecutiveswithourstockholdersbytyingasignificantportionofcompensationtotheCompany’sfinancialperformance.

• Providecompetitiveupsideopportunitywithoutencouragingexcessiverisk-taking.

• Ensureequalpayforequalworktoattractandincreasegenderdiversityandunderrepresentedminoritygroupsinleadershiproles.

WeutilizethecompetitiverangearoundthemediancompensationofcompaniesinthecompensationPeerGroupasastartingpoint.Compensationdecisionsaredeterminedbyconsideringseveralcriticalfactors,includingexperiencelevel,tenure,sustainedperformancemeasures,andalignmentwithspecificrequirementsofroles.TheCompensationCommitteedoesnotrigidlyadheretoapeer-basedbenchmarkingstrategyinsettingcompensationamountsforournamedexecutiveofficers.Instead,thePeerGroupcompensationinformationisoneofmanydatapointsconsideredbytheCompensationCommitteeinmakingsubjectivecompensationdecisionsusingitsbusinessjudgment.

THE ROLE OF THE COMPENSATION COMMITTEE AND THE EXECUTIVE OFFICERS IN DETERMINING

EXECUTIVE COMPENSATION

Composition of the Compensation Committee. TheCompensationCommitteeofourBoardiscomprisedofMses.Jolliffe(Chairman)andEvansandMessrs.BreslinandKastner.

Role of the Compensation Committee. TheCompensationCommitteehasprimaryresponsibilityforallcompensationdecisionsrelatingtoournamedexecutiveofficers.TheCompensationCommitteereviewstheaggregatelevelofourexecutivecompensation,aswellasthemixofelementsusedtocompensateournamedexecutiveofficersonanannualbasis.

Compensation Committee’s Use of Market and Survey Data. TheCompensationCommitteeunderstandsthatmostcompaniesconsiderpaylevelsatcomparably-sized,peercompanieswhensettingnamedexecutiveofficercompensationlevels.Withassistancefromitsindependentcompensationconsultant,ClearBridge,theCompensationCommitteehasdevelopedameaningfulcomparatorgroupfortheCompanyasastand-alonecompanyfollowingtheSpin-Off.

Inordertoconfirmcompetitivenessofcompensation,theCompensationCommitteeusesacombinationof(i)surveydatafromAONandMercerand(ii)proxycompensationdataofa“proxycomparatorgroup”insettingandadjustingcompensationlevels.InlightofthelackofdirectlycomparablecompaniesforIAAbusiness,companiesintheproxycomparatorgroupwereselectedbasedon(i)afocusonservice-orientedindustries;(ii)similarly-sizedrevenueandmarketcapitalizationlevels;(iii)comparablegrowth,profitabilityand/ormarketvaluationprofiles;and(iv)companieswithwhichIAAcompetesforexecutivetalent.Wherepossible,theCompensationCommitteeincludedcompaniesthatareinrelatedorsimilarindustriestotheCompany.

34

TABLE OF CONTENTS

BasedontherecommendationofClearBridge,theCompensationCommitteeselectedaproxycomparatorgroupforIAAfollowingtheSpin-Offconsistingofthefollowing15companies.CompensationpaidbythesecomparatorgroupcompanieswereconsideredbytheCompensationCommitteeinmaking2019compensationdecisions:followingtheSpin-Off.

2019 Proxy Comparator Group for IAA

AllisonTransmissionHoldings,Inc. DormanProducts,Inc. RitchieBros.AuctioneersInc.

Cars.comInc FairIsaacCorporation Sotheby's

CDKGlobal,Inc. HercHoldingsInc. StandardMotorProducts,Inc.

Copart,Inc. KARAuctionServices,Inc. Stericycle,Inc.

CoStarGroup,Inc. MSCIndustrialDirectCo.,Inc. TylerTechnologies,Inc.

Asdescribedabove,theCompensationCommitteeviewedtheproxycomparatorgroupandmarketdataasanimportantguide,butnotasthesoledeterminantinmakingitsdecisionsregarding2019compensationlevelsinitsbusinessjudgment.

Role of the Independent Compensation Consultant.FollowingtheSpin-Off,theCompensationCommitteeusedClearBridgeasitsindependentcompensationconsultantin2019.ClearBridgeprovided(i)advicetotheCompensationCommitteewithrespecttotheassessmentoftheCompany’sexecutivecompensationpractices;(ii)adviceregardingtheevaluationoflong-termincentivecompensationpractices;(iii)adviceandguidanceregardingthedesignofnewlong-termequityawards;(iv)adviceregardingrelatedcompensationmatters;(v)advicetotheCompensationCommitteewithrespecttoannualandlong-termincentiveplandesign;(vi)advicetotheCompensationCommitteeonthetermsofthenewemploymentagreementsweenteredintowiththenamedexecutiveofficers;and(vii)guidanceonthecompetitivenessoftheexecutiveofficers’elementsofcompensation.ClearBridgeregularlyattendsCompensationCommitteemeetingsandattendsexecutivesessionsasrequestedbytheChairmanoftheCompensationCommittee.TheCompensationCommitteehasreviewedtheindependenceofClearBridgeinlightofSECrulesandNYSElistingstandardsregardingcompensationconsultantsandhasconcludedthattheworkofClearBridgefortheCompensationCommitteedoesnotraiseanyconflictofinterest.AllworkperformedbyClearBridgeisandwassubjecttoreviewandapprovaloftheCompensationCommittee,andClearBridgedoesnotperformservicesforus,exceptforexecutiveanddirectorcompensation-relatedservicesonbehalfof,andasinstructedby,theCompensationCommittee.

Role of the Executive Officers.Mr.KettregularlyparticipatesinmeetingsoftheCompensationCommitteeatwhichcompensationactionsinvolvingournamedexecutiveofficersarediscussed.Mr.KettassiststheCompensationCommitteebymakingrecommendationsregardingcompensationactionsfortheexecutiveofficersotherthanhimself.Mr.KettrecuseshimselfanddoesnotparticipateinanyportionofanymeetingoftheCompensationCommitteeatwhichhiscompensationisdiscussed.

Role of Say On Pay Vote.BecausewehaveonlybeenanindependentpubliccompanysincetheSpin-Off,stockholdershaveyettohavetheopportunitytocastanon-binding,advisoryvoteonthecompensationofourNEOs(thisvoteiscommonlyreferredtoasa“sayonpay”vote).Wewillhaveourfirstsayonpayvotethisyear.

Inthisproxystatement,stockholdersarebeingaskedtovoteonhowfrequentlyweshouldconductsayonpayvotesinthefuture(thisvoteiscommonlyreferredtoasa“sayonpayfrequency”vote).OurBoardbelievesthatgoingforwardourstockholdersshouldhavetheopportunitytocastasayonpayvoteonanannualbasissothatourstockholdersmayannuallyexpresstheirviewsonourexecutivecompensationprogram.

TheCompensationCommitteeintendstoconsidertheoutcomeofstockholders’votesonourexecutivecompensationprogramwhenmakingfuturecompensationdecisionsforthenamedexecutiveofficers.

35

TABLE OF CONTENTS

ELEMENTS USED TO ACHIEVE COMPENSATION PHILOSOPHY AND OBJECTIVES

Elements of Executive Compensation Program DesignThefollowingtableliststheelementsofcompensationforourexecutivecompensationprogram.Theprogramusesamixoffixedandvariablecompensationelementsandprovidesalignmentwithbothshort-andlong-termbusinessgoalsthroughannualandlong-termincentives.Ourincentivesaredesignedtodriveoverallcorporateperformanceandbusinessunitstrategiesthatcorrelatetostockholdervalueandalignwithourstrategicvision.

ElementKey Characteristics

Why We Pay This Element

How We Determine Amount

2019 Decisions

Fixed

Basesalary Fixedcompensationcomponentpayableincash. Reviewedannuallyandadjustedwhenappropriate.

Rewardthenamedexecutiveofficersfortheirpastperformanceandfacilitatetheattractionandretentionofaskilledandexperiencedexecutivemanagementteam.

Companyperformance,individualperformance,experience,jobscope,tenure,reviewofcompetitivepaypracticesandbasesalaryasapercentageoftotalcompensation.

Allnamedexecutiveofficersreceivedasalaryincreasein2019followingtheSpin-Offtorecognizetheirnewroles.Seepage36.

Variable

Annualcashincentiveawards

Variablecompensationcomponentpayableincashbasedonperformanceagainstannuallyestablishedtargets.

Motivateandrewardthesuccessfulachievementofpre-determinedfinancialobjectivesattheCompany.

Awardopportunitiesarebasedonindividualperformance,experience,jobscopeandreviewofcompetitivepaypractices. Actualawardpayoutswerebasedonachievementof2019AdjustedEBITDAforIAA.

IAA’sAdjustedEBITDAperformancein2019resultedin114.9%ofthetargetawardforthenamedexecutiveofficersbecomingpayable.

Performance-basedrestrictedstockunits(PRSUs) PRSUswereawardedtoIAAnamedexecutiveofficersin2019byKARbeforeSpin-Off Atleast50%of2020IAAannuallong-termincentiveawardconsistsofPRSUs

PRSUsvestattheendofathree-yearperformanceperiod.

Motivateandrewardexecutivesforperformanceonkeylong-termmeasures. Aligntheinterestsofexecutiveswithourstockholders’interestsandservetoretainexecutivetalent.

Awardopportunitiesarebasedonindividual’sabilitytoimpactfutureresults,jobscope,individualperformanceandreviewofcompetitivepaypractices. 2019PRSUawardsgrantedbyKARearnedbasedon1-yearIAAAdjustedEBITDAperformancethroughDecember29,2019,withanadditionaltwoyeartimebasedvesting. PRSUawardsmadeupatleast50%ofthevalueoftheaggregatelong-termincentivesgrantedtothenamedexecutiveofficersin2020.

TheKARCompensationCommitteegrantedPRSUstoallofthenamedexecutiveofficersin2019priortotheSpin-Off,whichwereconvertedtoPRSUsofKARandIAAupontheSpin-Off.

StockOptions Stockoptionswillonlyhavevalueifthepriceofourcommonstockincreasesfollowingthegrantdate. Optionsvestratablyoneachofthefirstthreeanniversariesofthegrantdatesubjecttothenamedexecutiveofficer’scontinuedemploymentwiththeCompany.

Motivateandrewardexecutivesfordrivingperformancethatcreatesshareholdervalue. Aligntheinterestsofexecutiveswithourstockholders’interestsandservetoretainexecutivetalent.

Awardopportunitiesarebasedonindividual’sabilitytoimpactfutureresults,jobscope,individualperformanceandreviewofcompetitivepaypractices.

TheIAACompensationCommitteegrantedstockoptionstoallofthenamedexecutiveofficersin2019shortlyaftertheSpin-Off.

Restrictedstockunits(RSUs)

RSUsvestratablyoneachofthefirstthreeanniversariesofthegrantdatesubjecttothenamedexecutiveofficer’scontinuedemploymentwiththeCompany.

Aligntheinterestsofexecutiveswithourstockholders’interestsandservetoretainexecutivetalent.

Awardsbasedonindividual’sabilitytoimpactfutureresults,jobscope,individualperformanceandreviewofcompetitivepaypractices.

TheKARCompensationCommittee(priortotheSpin-Off)andIAACompensationCommittee(aftertheSpin-Off)eachgrantedRSUstoallofthenamedexecutiveofficersin2019.

36

TABLE OF CONTENTS

Compensation Structure and Goal SettingOurexecutivecompensationprogramisdesignedtodelivercompensationinaccordancewithcorporateperformancewithalargepercentageofcompensationatriskthroughlong-termequityawardsandannualcashincentiveawards.Theseawardsarelinkedtoactualperformance,consistentwithourbeliefthatasignificantamountofexecutivecompensationshouldbeintheformofequityandthatagreaterpercentageofcompensationshouldbetiedtoperformanceforexecutiveswhobearhigherlevelsofresponsibilityforourperformance.Themixoftargetdirectcompensationawardedin2019forourCEOandtheaverageofourothernamedexecutiveofficersisshowninthechartsbelow.Approximately75%ofourCEO’stotaltargetcompensation,andapproximately67%oftheaveragetotaltargetcompensationofourothernamedexecutiveofficers,isat-risk,consistingofPRSUs,RSUs,stockoptionsandanannualincentivebonusopportunity.

*Theamountsreportedinthe“OtherNamedExecutiveOfficerAverageCompensation”chartforMr.Johnstonhavebeenannualized,duetoMr.Johnston’sApril22,2019hiredate.Inaddition,Mr.Johnston’sspecialsign-onawards(cashandequity)havebeenexcludedfromthischart.

Base SalaryGeneral. Annualsalarylevelsforournamedexecutiveofficersarebaseduponvariousfactors,includingtheamountandrelativepercentageoftotalcompensationthatisderivedfrombasesalarywhensettingthecompensationofourexecutiveofficers,Companyperformance,individualperformance,experience,jobscopeandtenure.InviewofthewidevarietyoffactorsconsideredbytheCompensationCommitteeinconnectionwithdeterminingthebasesalaryofeachofournamedexecutiveofficers,theCompensationCommitteehasnotattemptedtorankorotherwiseassignrelativeweightstothefactorsthatitconsiders.Adescriptionofhowthesefactorswereappliedin2019isdescribedbelow.

Base Salaries for 2019. Eachnamedexecutiveofficer,otherthanMr.Johnston,wasemployedbyKARduring2018andhadabasesalarylevelatthestartof2019thatwasdeterminedbyKAR.InconnectionwiththeSpin-Off,ourCompensationCommitteereviewedeachnamedexecutiveofficer’sbasesalarylevelinlightofeachexecutive’sroleasamemberoftheseniorleadershipteamofanindependentstand-alonepubliccompany.TheCompensationCommittee’sreviewconsideredthefactorsdescribedaboveaswellasthebasesalariespaidbytheproxycomparatorgroupcompaniestosimilarlysituatedexecutivesaswellassurveydata.EachnamedexecutiveofficerexceptMr.JohnstonreceivedameaningfulsalaryincreaseasaresultofthenewroletheexecutivewasassumingfollowingtheSpin-Offandourbecominganindependentpubliccompany.Mr.JohnstonwashiredtobecomeourChiefFinancialOfficerinApril2019inanticipationoftheSpin-Off.Mr.Johnston’sbasesalarywassetaspartofhisinitialcompensationpackageandalreadytookintoaccounthimservingastheChiefFinancialOfficerofanindependentpubliccompany.Asaresult,Mr.Johnston’sbasesalarywasnotincreasedinconnectionwiththeSpin-Off.Thechartsbelowdescribethenamedexecutiveofficerbasesalariesineffectfor2019.

37

TABLE OF CONTENTS

ThefollowingbasesalarieswereineffectJanuary13,2019priortotheSpin-OffasdeterminedbyKAR:

Name Base Salary Increase % Effective Date

JohnKett $526,339 — January13,2019

TimO’Day $341,775 — July1,2018

SidneyPeryar $267,803 — July1,2018

MajuAbraham $251,129 — July29,2018

ThefollowingbasesalarieswereineffectJune30,2019immediatelyfollowingtheSpin-Off:


JohnKett $700,000 33% June30,2019

VanceJohnston $520,000 N/A April22,2019

TimO’Day $500,000 46% June30,2019

SidneyPeryar $400,000 49% June30,2019

MajuAbraham $300,000 19% June30,2019

Base Salaries for 2020.Inlate2019,theCompensationCommitteereviewedthebasesalariesofeachofournamedexecutiveofficersfor2019.Afterconsideringmultiplefactorsasnotedabove,theCompensationCommitteeapprovedthefollowingbasesalariesfor2020:


JohnKett $735,000 5% January1,2020

VanceJohnston $530,000 2% January1,2020

TimO’Day $520,000 4% January1,2020

SidneyPeryar $420,000 5% January1,2020

MajuAbraham $315,000 5% January1,2020

Annual Cash Incentive ProgramGeneral. NamedexecutiveofficerswithgreaterjobresponsibilitieshaveasignificantproportionoftheirannualcashcompensationtiedtoCompanyperformancethroughtheirannualincentiveopportunity.

The IAA, Inc. Annual Incentive Program.InconnectionwiththeSpin-Off,weestablishedtheIAA,Inc.AnnualIncentiveProgram(the“AnnualIncentiveProgram”)underthe2019EquityPlan.FollowingtheSpin-Off,eachnamedexecutiveofficer’sannualcashincentiveopportunityfor2019becamepayableunderthetermsofourAnnualIncentiveProgram.TheincentiveopportunityunderourAnnualIncentiveProgramreplacedthe2019annualincentiveopportunityoriginallyawardedbyKAR,asourCompensationCommitteebelievedthatitwasimportanttotieeachnamedexecutiveofficer’sincentivepaymenttoIAA’sperformancefortheyear.

Use of 2019 Adjusted EBITDAFollowingtheSpin-Off,theCompensationCommitteedeterminedtouse“AdjustedEBITDA”astherelevantperformancemetricfordeterminingawardsundertheAnnualIncentiveProgram.TheCompensationCommitteeselectedanEBITDA-basedperformancemetricbecausetheCommitteebelievesthatourEBITDAperformanceisanimportantdriverofstockholdervalueaswetransitiontobeinganindependentpubliccompany.

“AdjustedEBITDA”isequaltoEBITDA(earningsbeforeinterestexpense,incometaxes,depreciationandamortization)andexcludesnon-recurringitemsincludingbutnotlimitedto:

• onetimetransactioncosts,includingcostrelatedtotheSpin-Off;

• severance,restructuringandotherretentionexpenses;

• thenetlossorgainsassociatedwithcertainM&A,financing,andothertransactions;

• gainsandlossesrelatedtoforeigncurrency;

• unbudgetedSpin-Offcosts;

• significantunbudgetedlitigationcosts;

• significantunbudgetedcatastrophelosses;and

38

TABLE OF CONTENTS

• anyothernon-recurringexpenses&othersignificantunbudgeteditems.

2019 Target Bonus OpportunitiesEachnamedexecutiveofficer’sthreshold,targetandmaximumbonusopportunitiesundertheAnnualIncentiveProgramwereapprovedbyourCompensationCommittee.Likebasesalarylevels,inconnectionwiththeSpin-Off,ourCompensationCommitteereviewedeachnamedexecutiveofficer’sannualincentiveopportunityinlightofeachexecutive’sroleasamemberoftheseniorleadershipteamofanindependentstand-alonepubliccompany.TheCompensationCommittee’sreviewconsideredthesamefactorsdescribedaboveinthebasesalarydiscussionaswellastheannualincentiveopportunitiesprovidedbytheproxycomparatorgroupcompaniestosimilarlysituatedexecutivesand/orsurveydata.TheincentiveopportunitiesforallofthenamedexecutiveofficersexceptMr.Johnston(whowashiredinanticipationoftheSpin-Off)increasedasaresultofthebasesalaryincreasesdescribedabove,andcertainnamedexecutiveofficersalsoreceivedanincreaseintheirtargetbonusopportunitiesasapercentageofbasesalaryinordertoaligntheseniorleadershipteamtoourpayforperformancephilosophy,asdescribedbelow.

Eachnamedexecutiveofficer’s2019annualbonusopportunityisillustratedasfollows:

Bonus Opportunity

NameBase

Salary

Threshold % of

Base Salary

Target % of

Base Salary

Superior % of

Base Salary

JohnKett(1) $613,170 50 100 150

VanceJohnston(2) $520,000 37.5 75 112.5

TimO’Day(3) $420,887 34 67.5 102

SidneyPeryar(3) $333,901 27.5 55 82.5

MajuAbraham(3) $275,565 25 50 75

(1) Mr.Kett’sbasesalarywasincreasedinJune2019from$526,339to$700,000.Thefiguresshowninthetablereflecttheprorated,blendedamountsappliedtohisaward.

(2) Mr.Johnston’sawardwasafullyearaward,basedonhisinitialcompensationpackagenegotiatedatthetimehewashired.(3) ThebasesalaryandtargetannualincentiveopportunitiesforMessrs.O’Day,Peryar,andAbrahamwereincreasedinJune

2019bytheCompensationCommitteeinconnectionwiththeSpin-Off.Mr.O’Day’sbasesalarywasincreasedfrom$341,775to$500,000,andhistargetbonuspercentagewasincreasedfrom60%ofbasesalaryto75%ofbasesalary.Mr.Peryar’sbasesalarywasincreasedfrom$267,803to$400,000,andhistargetbonuspercentagewasincreasedfrom50%ofbasesalaryto60%ofbasesalary.Mr.Abraham’sbasesalarywasincreasedfrom$251,129to$300,000,andhistargetbonuspercentagewasincreasedfrom40%ofbasesalaryto60%ofbasesalary.Thesefiguresshowninthetablereflecttheprorated,blendedamountsappliedtoeachexecutive’sbonusopportunity.

Performance Targets for the Annual Incentive ProgramInsettingtheIAAAdjustedEBITDAtargetsundertheAnnualIncentiveProgramfollowingtheSpin-Off,theCompensationCommitteereviewedtheCompany’sbusinessplanapprovedbytheBoardanddeterminedthelevelofperformancerequiredtoreceivethreshold,targetandsuperiorannualincentivepayouts.TheCompensationCommitteeestablishedtheperformanceobjectivesinamountswhichitbelievedwouldincreasestockholdervalueandbeachievablegivenasustainedperformanceonthepartofthenamedexecutiveofficersandwhichwouldrequireincreasinglygreaterresultstoachievethetargetandsuperiorobjectives.TheCompensationCommitteemaydecreasethepotentialpayoutsateachperformancetargetif,inthediscretionoftheCompensationCommittee,thecircumstanceswarrantsuchanadjustment.

39

TABLE OF CONTENTS

2019 Performance Targets.Thechartwhichfollowsprovidesthe2019AdjustedEBITDAperformancetargetsestablishedbytheCompensationCommitteefor2019followingtheSpin-Off,aswellastheactuallevelofperformanceachieved(dollarsinmillions):

Threshold Target SuperiorAchieved Results(1)

Percentage of Target Award Earned (Adjusted

EBITDA)

IAA $390.6 $408.70 $449.6 $420.90 114.9%

(1) IAA’sreportedAdjustedEBITDAfortheyearendedDecember29,2019wasapproximately$411.7million,butforAnnualIncentiveProgrampurposestheachievedresultswerehigherduetotheapplicationoftheadjustmentsdescribedabove.

2019 Annual Incentive Program Payouts.UndertheAnnualIncentiveProgram,thresholdperformanceobjectivesmustbemetinorderforanypayouttooccur.Payoutscanrangefrom50%oftargetawardsforperformanceatthresholduptoamaximumof150%oftargetawardsforsuperiorperformanceornopayoutifperformanceisbelowthreshold.Thetablebelowshowstheannualincentiveopportunitiesforournamedexecutiveofficersfor2019.BecauseIAAachievedatleastthethresholdlevelofperformancein2019,eachofournamedexecutiveofficerswaseligibletoreceiveanawardundertheAnnualIncentiveProgramin2019,whichamountsaresetforthinthe“SummaryCompensationTablefor2019”onpage48.BasedontheCompany’sperformanceduring2019,ournamedexecutiveofficersearnedthepercentagesandcorrespondingpayoutamountsoftheirtargetannualincentiveawardsassetforthbelowbasedonthefollowingformula:

Target Annual Incentive Award x Percentage of Target Award Earned = 2019 Payout

NameTarget Annual

Incentive Award

Percentage of Target

Award Earned (Adjusted

EBITDA)AIP

Achievement 2019 Payout

JohnKett(1) $613,170 103% 114.9% $704,655

VanceJohnston $390,000 103% 114.9% $448,188

TimO’Day(1) $290,033 103% 114.9% $333,305

SidneyPeryar(1) $186,950 103% 114.9% $214,844

MajuAbraham(1) $140,230 103% 114.9% $161,148

(1) Mr.Kett,O’Day,Peryar,andAbraham’stargetannualincentiveawardreflectstheprorated,blendedadjustmentstoeachexecutive’sbasesalaryandtargetannualincentiveopportunityasdiscussedabove.

Long-Term Incentive OpportunitiesTheCompanyprovideslong-termincentivecompensationopportunitiesintheformofstockoptions,PRSUsandRSUs,eachasdescribedbelow.

Treatment of Historical KAR Awards in Spin-Off.AtthetimeoftheSpin-Off,allofournamedexecutiveofficersheldoutstandinglong-termequityawardsthatwereoriginallygrantedbyKAR.UpontheSpin-Off,outstandinglong-termequityawardsoriginallygrantedbyKARtoournamedexecutiveofficersandotheremployeeswereconvertedintoawardswithrespecttoanequalnumberofsharesofourcommonstockandKAR’scommonstock.Forexample,ifanamedexecutiveofficerwasgrantedastockoptionawardcovering1,000KARsharesbeforetheSpin-Off,thisoptionawardwasequitablyadjustedintoastockoptionawardcovering1,000KARsharesand1,000IAAsharesaftertheSpin-Off(andtheoptionexercisepricewasalsoequitablyadjustedtomaintainthesameeconomicvalueoftheoptionawardbeforeandaftertheSpin-Off).Similarly,ifanamedexecutiveofficerwasgrantedarestrictedstockunitawardcovering1,000KARsharesbeforetheSpin-Off,thisrestrictedstockunitawardwasequitablyadjustedintoarestrictedstockunitawardcovering1,000KARsharesand1,000IAAsharesaftertheSpin-Off.

40

TABLE OF CONTENTS

ThissectiondescribesboththetreatmentoftheadjustedKARawardsaswellasthenewlong-termequityawardsthatwegrantedtoournamedexecutiveofficersunderour2019EquityPlanfollowingtheSpin-Off.Allgrantsbyusunderour2019EquityPlanwereapprovedbyourCompensationCommitteeandrelatesolelytosharesofourcommonstock.

2019 Long-Term Incentive Awards.OnFebruary22,2019,theKARCompensationCommitteegrantedournamedexecutiveofficers(otherthanMr.Johnston)PRSUsandRSUsunderitslong-termincentiveprogram.

TheaggregatetargetawardvalueforMr.Kettwasallocatedsuchthat75%ofthevaluewasintheformofPRSUsand25%wasintheformofRSUs.FortheothernamedexecutiveofficersreceivinganawardinFebruary,theaggregatetargetawardvaluewasallocatedsuchthat50%ofthevaluewasintheformofPRSUsand50%ofthevaluewasintheformofRSUs.Mr.JohnstonwasgrantedanannualequityincentiveawardbyKARinMay2019shortlyafterhewashired.LikeourothernamedexecutiveofficersotherthanMr.Kett,theaggregatetargetawardvalueforMr.Johnston’sannualequityawardwasallocatedsuchthat50%ofthevaluewasintheformofPRSUsand50%ofthevaluewasintheformofRSUs.Inadditiontohisannualequityaward,KARalsograntedMr.Johnstonaspecialsign-onawardofRSUsdescribedbelowtooffsetthelossofcompensationfromhisprioremployerthatheforfeitedwhenhejoinedthecompany.

FollowingtheSpin-Off,wemadeaninitiallong-termincentiveawardtoeachnamedexecutiveofficerunderour2019EquityPlan.Aswithbasesalariesandannualincentiveopportunities,inconnectionwiththeSpin-Off,ourCompensationCommitteereviewedeachnamedexecutiveofficer’slong-termequityincentiveopportunityinlightofeachexecutive’sroleasamemberoftheseniorleadershipteamofanindependentstand-alonepubliccompany.TheCompensationCommittee’sreviewconsideredthesamefactorsdescribedaboveinthebasesalarydiscussionaswellasthelong-termincentiveopportunitiesprovidedbytheproxycomparatorgroupcompaniestosimilarlysituatedexecutivesand/orsurveydata.TheCompensationCommitteealsobelieveditwasimportantforthenamedexecutiveofficerstohaveameaningfulinitialequityinterestinIAAinordertoaligntheirinterestswithIAA’sstockholdersandincentivizelong-termperformance,as50%ofthevalueofthe2019awardsgrantedbyKARremainedtiedtothevalueofashareofKARcommonstockandnotIAA’scommonstock.

TheinitialIAAawardsweremadetomakeappropriateincreasestoeachnamedexecutiveofficer’s2019long-termincentiveopportunityandconsistedofstockoptionsandRSUs.ThetargetawardvaluefortheinitialIAAawardwasbasedonthenewpostSpin-Offannuallong-termincentiveopportunityforeachexecutive,aswellasinrecognitionforcompletingtheSpin-Off,whilealsotakingintoaccountthevalueofthelong-termincentiveawardalreadygrantedin2019byKAR.

Theaggregatetargetawardvalueforeachnamedexecutiveofficerwasallocatedsuchthat80%ofthevaluewasintheformofstockoptionsand20%wasintheformofRSUs.TheCompensationCommitteedeterminedtomoreheavilyweightthelong-termincentiveawardsinstockoptionsbecauseitwantedtoalignournamedexecutiveofficerswithlong-termshareholdervaluecreationfromthetimeoftheSpin-Off.

Thefollowingtablebelowshowstheequityawardsthatweregrantedtothenamedexecutiveofficersduring2019,andincludesboththeawardsgrantedbyKARpriortotheSpin-OffandawardsgrantedbyIAAaftertheSpin-Off.Theawardvaluesshownbelowincludethefullgrantdatevalueforeachawardatthetimeitwasgranted(eventhoughfortheadjustedKARawards,aportionofthegrantdatevalueistiedtoKARcommonsharesasaresultoftheSpin-Offadjustmentsdescribedabove).

2019 Long-Term Incentive Awards (Includes Pre and Post Spin-Off Awards)

Name Options

Value of Options at

GrantTarget

PRSUs

Value of Target

PRSUs at Grant RSUs

Value of RSUs at

Grant

JohnKett 41,914 $576,737 20,972 $493,576 10,062 $308,754

VanceJohnston(1) 7,557 $103,984 9,374 $260,082 35,154 $986,103

TimO’Day 33,811 $465,239 2,906 $68,393 5,383 $184,738

SidneyPeryar 20,917 $287,818 1,708 $41,098 3,240 $113,056

MajuAbraham 15,979 $219,871 1,068 $25,135 2,238 $80,090

41

TABLE OF CONTENTS

(1) Mr.Johnstonreceivedanequityawardvaluedat$700,000asaspecialsign-onawardtomakeupforcompensationfromhispreviousemployerthatwasforfeitedwhenhejoinedtheCompanyintheformofRSUs.TheseRSUsawardedbyKARareincludedinthetableabove

2019 Performance-Based RSU AwardsThePRSUsgrantedbyKARtothenamedexecutiveofficersin2019originallyhadathree-yearperformanceperiod.However,inconnectionwiththeSpin-Off,KARdeterminedthatitwouldbedifficulttosetthree-yearperformancegoalsshortlyaftertheSpin-OffandthattheperformancevestingrequirementsfortheIAAportionofthe2019PRSUswouldinsteadbemeasuredoveraone-yearperiodusingaperformancemetricandtargetsestablishedbyourCompensationCommitteeaftertheSpin-Off.

TheCompensationCommitteedeterminedtouseAdjustedEBITDAtargetstomeasureperformanceforthe2019PRSUs.AdjustedEBITDAforthesepurposesisdefinedsubstantiallythesameasdescribedaboveinthecontextoftheAnnualIncentiveProgram.AlthoughAdjustedEBITDAisalsousedastheperformancemetricundertheAnnualIncentiveProgramfor2019,theCompensationCommitteeviewsthisasaone-yearapproachrelatedtohowlateintheyeartheSpin-Offoccurredandtheadjustedone-yearperformanceperiodforthe2019PRSUs.Asdescribedbelow,PRSUsgrantedtothenamedexecutiveofficersaspartofour2020annuallong-termgrantsuseadifferentperformancemetricthanAdjustedEBITDAandhaveathree-yearperformanceperiod.

TheamountofthetargetPRSUseligibletobecomevestedwillbe:0%forbelowthresholdperformance,50%forthresholdperformance,100%fortargetperformanceandupto200%forachievingthemaximumperformancelevelorhigher.LinearinterpolationwillbeusedtocalculatethepercentageofPRSUseligibletobecomevestedifperformancefallsbetweenthelevelsdescribedbelow.

The2019AdjustedEBITDAtargetsdeterminedbytheCompensationCommitteeareincludedinthetablebelow.

Adjusted EBITDA (dollars inmillions) During the Measurement Period Number of PRSUs Vesting

Below Threshold:

Below$378.05 0%ofTarget

Threshold:

$378.05 50%ofTarget

Target:

$408.70 100%ofTarget

Maximum:

Greaterthanorequalto$490.44 200%ofTarget

TheCompanyachievedAdjustedEBITDA(dollarsinmillions)of$420.9versusatargetof$408.7fortheone-yearperformanceperiodendedDecember29,2019.Assuch,onFebruary4,2020,basedontheAdjustedEBITDAlevelachieved,114.9%oftheIAAportionofthe2019PRSUsbecameeligibletobecomevestedbasedonperformanceabovethetargetlevelbutbelowthemaximumlevel.ThisperformanceresultedinthefollowingnumberofPRSUseligibletobecomevested:

Name

Number of PRSUsVesting

for Performance

2019 PRSUPayout

Subject to Time- Vesting(1)

JohnKett 12,199 $586,162

VanceJohnston 5,416 $260,239

TimO’Day 1,690 $81,205

SidneyPeryar 993 $47,714

MajuAbraham 621 $29,839

(1) Basedonasharepriceof$48.05,theFebruary5,2020marketcloseprice.ThesenumbersreflectonlytheIAAportionofthe2019PRSUs.

42

TABLE OF CONTENTS

The2019PRSUsthatwereearnedattheendoffiscal2019basedonour2019performanceremainsubjecttotime-basedvestingandrequirecontinuedemploymentthroughtheendofour2021calendaryearinorderforanyexecutivetoreceiveapaymentinrespectoftheseawards.

2019 Time-Based RSU AwardsTheRSUsgrantedtothenamedexecutiveofficersin2019byKARpriortotheSpin-Offthatwereassumedbyus,andtheRSUsgrantedtothenamedexecutiveofficersbyusfollowingtheSpin-Off,willeachvestandconvertintosharesofcommonstockofIAAinsubstantiallyequalinstallmentsoneachofthefirstthreeanniversariesofthegrantdate,subjecttothenamedexecutiveofficer’scontinuedemploymentwiththeCompanythrougheachsuchanniversary.

2019 Stock Option AwardsLiketheRSUs,thestockoptionsgrantedtothenamedexecutiveofficersbyusfollowingtheSpin-Offwillvestinsubstantiallyequalinstallmentsoneachofthefirstthreeanniversariesofthegrantdate,subjecttothenamedexecutiveofficer’scontinuedemploymentwiththeCompanythrougheachsuchanniversary.

Prior Year KAR Performance-Based AwardsInconnectionwiththeSpin-Off,outstandingKARPRSUsgrantedtothenamedexecutiveofficersin2018and2017thatwereassumedbyIAAwereconvertedintotime-basedawards.AsaresultofadjustmentsapprovedbyKAR,thetargetnumberofthesePRSUsremaineligibletobecomevestedsubjecttothenamedexecutiveofficer’scontinuedemploymentwiththeCompanythroughtheendoftheoriginalperformanceperiod.

Looking Forward 2020 and BeyondOurfirstannuallong-termequityawardsasanindependentpubliccompanywereapprovedbyourCompensationCommitteeinFebruary2020.Theaggregatetargetawardvalueforthenamedexecutiveofficerswasallocatedsuchthatatleast50%ofthevaluewasintheformofPRSUsandtheremainingportionwasintheformofRSUs.ThePRSUshaveathree-yearperformanceperiodandwillbecomevestedbasedontheCompany’sachievementofreturnoninvestedcapitaltargetsapprovedbytheCompensationCommittee.Byusingreturnoninvestedcapitaltargets,the2020PRSUswillhaveadifferentperformancemetricthantheperformancemetricusedunderour2020annualincentiveplan(whichisAdjustedEBITDA).Inadditiontohisannuallong-termequityaward,wealsograntedMr.Kettaspecialone-timePRSUawardthatisdesignedtomotivatehimtogrowourmarketshareandprofitmarginsoverathree-yearperformanceperiod.TheCompensationCommitteebelievesour2020long-termequitygrantsareappropriatelystructuredtoalignournamedexecutiveofficers’interestswithstockholdersandtoincentivizeournamedexecutiveofficerstoachieveourlong-termobjectivesandcontinueourgrowthasanindependentpubliccompany.

Retirement, Health and Welfare BenefitsWeofferavarietyofhealthandwelfareandretirementprogramstoalleligibleemployees,includingournamedexecutiveofficers.AswithallCompanyemployees,ournamedexecutiveofficersareeligibletoreceive401(k)employermatchingcontributionsequalto100%ofthefirst4%ofcompensationcontributedbythenamedexecutiveofficer.Thehealthandwelfareprogramsareintendedtoprotectemployeesagainstcatastrophiclossandencourageahealthylifestyle.Ourhealthandwelfareprogramsincludemedical,dental,vision,pharmacy,life,disabilityandaccidentaldeathanddisabilityinsurance.Wealsoprovidetravelinsurancetoallemployeeswhotravelforbusinesspurposes.

Wealsoprovidecertainenhancedretirementvestingofequity-incentiveawardsasdescribedin“PotentialPaymentsUponTerminationofChangeinControl—PotentialPaymentsUponTerminationofChangeofControlTable”.

PerquisitesTheCompanyprovidesthenamedexecutiveofficersalimitednumberofperquisitesthattheCompensationCommitteebelievesarereasonableandconsistentwiththeobjectiveofattractingandretaininghighlyqualifiedexecutiveofficers.Theperquisiteswhicharecurrentlyavailabletocertainofournamedexecutiveofficersinclude

43

TABLE OF CONTENTS

anautomobileallowanceoruseofaCompany-ownedautomobile,anallowanceforexecutivephysicals,Company-paidgrouptermlifeinsurancepremiumsandrelocationbenefitsundertheCompany’smobilityprogram.Pleaseseefootnote5tothe“SummaryCompensationTablefor2019”onpage48formoreinformationregardingperquisites.

COMPENSATION POLICIES AND OTHER INFORMATION

Employment AgreementsFollowingtheSpin-Off,weenteredintonewemploymentagreementswitheachofournamedexecutiveofficers.ThesenewagreementsreplacedanyprioremploymentagreementsthatwereinplacewhiletheexecutiveswereemployedbyKAR.ThetermsofthesenewemploymentagreementswereapprovedbyourCompensationCommitteeandwereintendedtoretainourleadershipteamfollowingtheSpin-Off.SeverancebenefitsuponaqualifyingterminationnotinconnectionwithachangeincontrolundertheemploymentagreementsaretwotimesbasesalaryandtargetbonusforMr.Kettand1.5timesbasesalaryandtargetbonusforallothernamedexecutiveofficersotherthanMr.Abraham,whoseseverancebenefitsequalonetimesbasesalaryandtargetbonus.SeverancebenefitsuponaqualifyingterminationinconnectionwithachangeincontrolarethreetimesbasesalaryandtargetbonusforMr.Kettand2.5timesbasesalaryandtargetbonusfortheothernamedexecutiveofficersotherthanMr.Abraham,whosechangeincontrolseverancebenefitsequal1.5timesbasesalaryandtargetbonus.Nonamedexecutiveofficerisentitledtoreceivea“gross-up”orsimilarpaymentforanyexcisetaxesthatmaybecomepayableinconnectionwithachangeincontrolpursuanttoSections280Gand4999oftheInternalRevenueCodeof1986,asamended(the“Code”),and,dependingonwhatresultsinthebestafter-taxbenefitfortheexecutive,benefitsmaybe“cutback”insteadinsuchcircumstances.

Adescriptionoftheseagreementscanbefoundinthesectiontitled“PotentialPaymentsUponTerminationorChangeinControl—EmploymentAgreementswithNamedExecutiveOfficers.”

Tax and Accounting ConsiderationsSection 162(m).Section162(m)oftheCodegenerallyprohibitsapublicly-heldcompanyfromdeductingcompensationpaidtoacurrentorformerNEOthatexceeds$1.0millionduringthetaxyear.CertainawardsgrantedbeforeNovember2,2017thatwerebaseduponattainingpre-establishedperformancemeasuresthatweresetbyanindependentcompensationcommitteeunderaplanapprovedbystockholders,aswellasamountspayabletoformerexecutivespursuanttoawrittenbindingcontractthatwasineffectonNovember2,2017,mayqualifyforanexceptiontothe$1.0milliondeductibilitylimit.

Asoneofthefactorsinitsconsiderationofcompensationmatters,theCompensationCommitteenotesthisdeductibilitylimitation.However,theCompensationCommitteehastheflexibilitytotakeanycompensation-relatedactionsthatitdeterminesareinthebestinterestsofIAAandourstockholders,includingawardingcompensationthatmaynotbedeductiblefortaxpurposes.TherecanbenoassurancethatanycompensationwillinfactbedeductibleasaresultofthelimitationsunderSection162(m).

Accounting for Stock-Based Compensation.Weaccountforstock-basedcompensationinaccordancewiththerequirementsofASC718.

Clawback Policy for Financial Restatements.TheCompany’sclawbackpolicyprovidesfortherecoveryofincentivecompensationintheeventtheCompanyisrequiredtoprepareanaccountingrestatementduetoanycurrentorformerexecutiveofficer’sintentionalmisconduct.Insuchanevent,theexecutiveofficerwouldberequiredtorepaytotheCompanytheexcessamountofincentivecompensationreceivedundertheinaccuratefinancialstatement.TheCompanyintendstorevisethispolicyasneededtocomplywiththerequirementsoftheDodd-FrankWallStreetReformandConsumerProtectionActwhensuchrequirementsbecomeeffective.

Insider Trading PolicyOurinsidertradingpolicyexpresslyprohibits:

• ownershipofmarginsecurities;

• tradinginoptions,warrants,putsandcallsorsimilarinstrumentsontheCompany’ssecurities;and

44

TABLE OF CONTENTS

• sellingtheCompany’ssecurities“short.”

Wealsoprohibitofficers,directorsandemployeesfrom:

• pledgingtheCompany’ssecuritiesascollateralforloans;and

• purchasingorsellingtheCompany’ssecuritieswhileinpossessionofmaterial,non-publicinformation,orotherwiseusingsuchinformationfortheirpersonalbenefit.

OurexecutivesanddirectorsarepermittedtoenterintotradingplansthatareintendedtocomplywiththerequirementsofRule10b5-1oftheExchangeActsothattheycanprudentlydiversifytheirassetportfoliosandexercisetheirstockoptionsbeforetheirscheduledexpirationdates.

Anti-Hedging PolicyInadditiontotheCompany’sexistinganti-pledgingofCompanystockpolicy,theCompanyadoptedaformalanti-hedgingofCompanystockpolicy,whichprohibitsourofficersanddirectorsfromengagingincertainformsofhedgingormonetizationtransactionswithrespecttotheCompany’sstock,suchasprepaidvariableforwardcontracts,equityswaps,collarsandexchangefunds.

Stock Ownership Guidelines and Stock Holding RequirementTheCompensationCommitteeadoptedthefollowingstockownershipguidelineswhichareapplicabletoournamedexecutiveofficers:

Title Stock Ownership Guideline

CEO 5timesannualbasesalary

OtherNamedExecutiveOfficers 3timesannualbasesalary

Thenamedexecutiveofficersmusthold50%ofthevestedshares,netoftaxes,ofCompanystockreceivedunderawardsgrantedonorafterJanuary1,2019andtheownershipguidelinemustbemetwithinfiveyears.Mr.Kettownssharesinexcessofthestockownershipguidelinesandtheothernamedexecutiveofficerscurrentlyareworkingtowardscompliance.

45

TABLE OF CONTENTS

COMPENSATION COMMITTEE REPORT TheCompensationCommitteehasreviewedtheCompensationDiscussionandAnalysisforexecutivecompensationfor2019anddiscussedthatanalysiswithmanagement.Basedonitsreviewanddiscussionswithmanagement,theCompensationCommitteerecommendedtoourBoardthattheCompensationDiscussionandAnalysisbeincludedinthisProxyStatementandincorporatedbyreferenceintotheCompany’s2019AnnualReportonForm10-K.ThisreportissubmittedbyLynnJolliffe,William(Bill)Breslin,OlafKastner,andGailEvans.

Compensation Committee

Lynn Jolliffe (Chair) William (Bill) Breslin

Olaf Kastner Gail Evans

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

Duringfiscalyear2019,Ms.JolliffeandMessrs.BreslinandKastnerservedasmembersoftheCompensationCommittee.Ms.EvanswasappointedtotheCompensationCommitteeinFebruary2020.Noneofourexecutiveofficersserve,orinfiscalyear2019hasserved,asamemberoftheboardofdirectorsorcompensationcommitteeofanyentitythathasoneormoreexecutiveofficersservingonourBoardorourCompensationCommittee.NoneoftheindividualsservingasmembersoftheCompensationCommitteeduringfiscalyear2019arenoworwerepreviouslyanofficeroremployeeoftheCompanyoritssubsidiaries.

46

TABLE OF CONTENTS

ANALYSIS OF RISK IN THE COMPANY’S COMPENSATION STRUCTURE

TheCompensationCommitteeconsidersthepotentialrisksinourbusinesswhendesigningandadministeringtheCompany’spayprogram,andtheCompensationCommitteebelievesitsbalancedapproachtoperformancemeasurementandpaydeliveryworkstoavoidmisalignedincentivesforindividualstoundertakeexcessiveorinappropriaterisk.Further,programadministrationissubjecttoconsiderableinternalcontrols,andwhendeterminingtheprincipaloutcomes—performanceassessmentsandpaydecisions—theCompensationCommitteereliesonprinciplesofsoundgovernanceandgoodbusinessjudgment.Inaddition,annualincentiveawardsandlong-termincentiveawardsgrantedtoexecutivesaretiedtocorporateperformancegoals.Thesemetricsencourageperformancethatsupportsthebusinessasawhole.Theexecutive,aswellasallemployeeannualincentiveawardsfor2019,includeamaximumpayoutopportunityequalto150%oftargetforannualincentiveawardsandlong-termPRSUswithamaximumpayoutof200%oftarget.Othercompensationstructuresbelowtheexeutivelevelaretiedtosimilarobjectivesandhavesimilardesignelements.

Ourexecutivesarealsoexpectedtomeetshareownershipguidelinesinordertoaligntheexecutives’interestswiththoseofourstockholders.Also,theCompany’sclawbackpolicypermitstheCompanytorecoverincentivecompensationpaidtoanexecutiveofficerifthecompensationresultedfromanyfinancialresultormetricimpactedbytheexecutiveofficer’sintentionalmisconduct.Thispolicyhelpstodiscourageinappropriaterisks,asexecutiveswillbeheldaccountableformisconductwhichisharmfultotheCompany’sfinancialandreputationalhealth.

TheCompensationCommitteehasconcludedthattheCompany’scompensationprograms(i)donotincludeelementsthathavethepotentialtoencourageexcessiverisk-taking;or(ii)haveimplementedfeatures,stepsandcontrolsthataredesignedtolimitrisksofourcompensationarrangements.TheCompensationCommitteehasconcludedthattheCompanyhasabalancedpayandperformanceprogramthatdoesnotencourageexcessiverisk-takingthatisreasonablylikelytohaveamaterialadverseeffectontheCompany.

47

TABLE OF CONTENTS

SUMMARY COMPENSATION TABLE FOR 2019 Thetablebelowcontainsinformationconcerningthecompensationof(i)ourchiefexecutiveofficer;(ii)ourchieffinancialofficer;and(iii)eachofthethreeothermosthighlycompensatedexecutiveofficerswhowereservingasourexecutiveofficersasofDecember29,2019.ThistableincludesbothcompensationfromKARpriortotheSpin-OffandcompensationfromIAAaftertheSpin-Off.

Name and Principal Position Year Salary Bonus(1)

Stock Awards(1)(2)

Option Awards(3)

Non-Equity Incentive Plan

Compensation(4)All Other

Compensation(5) Total

John Kett 2019 $613,170 $802,330 $576,737 $704,655 $37,290 $2,734,182

ChiefExecutiveOfficer 2018 $501,275 $626,593 $619,172 $32,870 $1,779,910

Vance Johnston 2019 $360,000 $100,000 $1,246,185 $103,984 $448,188 $24,936 $2,283,293

ChiefFinancialOfficer

Tim O’Day 2019 $420,887 $253,131 $465,239 $333,305 $32,771 $1,505,333

President,U.S.Operations 2018 $333,638 $130,296 $234,374 $32,186 $730,494

Sidney Peryar 2019 $333,901 $154,154 $287,818 $214,844 $26,720 $1,017,437

ExecutiveVicePresident, 2018 $262,654 $77,270 $153,757 $26,377 $520,058

ChiefLegalOfficer

&Secretary

Maju Abraham 2019 $275,565 $105,225 $219,871 $161,148 $27,402 $789,211

SeniorVicePresident, 2018 $230,798 $42,746 $114,744 $24,671 $412,959

andChiefInformationOfficer

(1) ForMr.Johnston,thebonus($100,000)andadditionalStockAwards($700,000grantdatevalue)wereattributabletoaspecialsign-onaward,grantedtomakeupforcompensationthatwasforfeitedfromhispreviousemployeruponjoiningtheCompany.

(2) Theamountsreportedinthiscolumnfor2019representthegrantdatefairvalueofPRSUsandRSUsgrantedonFebruary22,2019,May10,2019andJuly29,2019,computedinaccordancewithASC718.ThereportedawardvalueshavebeendeterminedusingtheassumptionsdescribedinNote5totheconsolidatedfinancialstatementsincludedinIAA’s2019AnnualReport.For2019PRSUs,theamountsreportedarebasedontheprobableoutcomeoftheperformanceconditionsasdeterminedonthegrantdate.Ifweachievedthehighestlevelofperformanceunderthe2019PRSUs,thegrantdatefairvalueofthePRSUswouldbeasfollows:Mr.Kett($987,152);Mr.Johnston($520,164);Mr.O’Day($136,785);Mr.Peryar($80,395);andMr.Abraham($50,721).

(3) Theamountsreportedinthiscolumnfor2019representthegrantdatefairvalueofstockoptionsgrantedonJuly29,2019,computedinaccordancewithASC718.ThereportedawardvalueshavebeendeterminedusingtheassumptionsdescribedinNote5totheconsolidatedfinancialstatementsincludedinIAA’s2019AnnualReport.

(4) TheamountreportedisequaltotheamountpaidtothenamedexecutiveofficerundertheAnnualIncentiveProgram,whichisgovernedbytheOmnibusPlan.

(5) Theamountsreportedfor2019consistofthefollowing:

• Automobileallowance:Mr.Kett,O’Day,andPeryar–$18,000;Mr.Johnston–$12,462;Mr.Abraham–$15,600;

• 401(k)matchingcontributions:Mr.Kett,O’Day,JohnstonandAbraham–$11,200;Mr.Peryar–$7,608;

• Company-paidgrouptermlifeinsurancepremiums:Mr.Kett–$3,870;Mr.Johnston–$1,274;Mr.O’Day–$3,571;Mr.Peryar–$1,112;andMr.Abraham–$602;and

• Executivephysical:Mr.Kett–$3,500.

48

TABLE OF CONTENTS

GRANTS OF PLAN-BASED AWARDS FOR 2019 ThefollowingtablesummarizesthepayoutswhichournamedexecutiveofficerscouldormayhavereceivedupontheachievementofcertainperformanceobjectivesundertheAnnualIncentiveProgramandthegrantsofPRSUs,stockoptionsandRSUsmadetoournamedexecutiveofficersduring2019.ThistableincludesbothawardsfromKARpriortotheSpin-OffandawardsfromIAAaftertheSpin-Off.AwardsgrantedbyIAAweremadeunderour2019EquityPlan.

Estimated Future Payouts Under Non-Equity Incentive

Plan Awards(1)

Estimated Future Payouts Under Equity

Incentive Plan Awards(2)

Name (a)

Grant Date

(b)Threshold

($)(c)(1)Target

($)(d)(1)Maximum

($)(e)(1)Threshold

(#)(f)(2)Target

(#)(g)(2)Maximum

(#)(h)(2)

Number of Securities Underlying

RSU (#)(3)(i)

Number ofOptions

ExercisePrice

Grant Date Fair Value

of Stock and Option

Awards ($)(4)(j)

John Kett — 306,585 613,170 919,755

2/22/2019 10,486 20,972 41,944 493,576

2/22/2019 6,992 164,556

7/29/2019 3,070 144,198

7/29/2019 41,914 $46.97 576,737

Vance Johnston — 229,427 390,000 688,281

5/10/2019 4,687 9,374 18,748 260,082

5/10/2019 9,374 260,082

5/10/2019 25,236 700,000

7/29/2019 544 26,021

7/29/2019 7,557 $46.97 103,984

Tim O’Day — 142,050 290,033 426,149

2/22/2019 1,453 2,906 5,812 68,393

2/22/2019 2,906 68,393

7/29/2019 2,477 116,345

7/29/2019 33,811 $46.97 465,239

Sidney Peryar — 93,475 186,950 280,425

2/22/2019 854 1,708 3,416 41,098

2/22/2019 1,708 41,098

7/29/2019 1,532 71,958

7/29/2019 20,917 $46.97 287,818

Maju Abraham — 70,115 140,230 210,345

2/22/2019 534 1,068 2,136 25,135

2/22/2019 1,068 25,135

7/29/2019 1,170 54,955

7/29/2019 15,979 $46.97 219,871

(1) Columns(c),(d)and(e)includethepotentialawardsforperformanceatthethreshold,targetandmaximum(“superior”)levels,respectively,undertheAnnualIncentiveProgram.See“CompensationDiscussionandAnalysis—ElementsUsedtoAchieveCompensationPhilosophyandObjectives—AnnualCashIncentiveProgram”forfurtherinformationonthetermsoftheAnnualIncentiveProgram.

(2) Columns(f),(g)and(h)includethepayoutrangesforthePRSUsgrantedin2019,whichare50%forthreshold,100%fortarget,and200%formaximum.Theactualpayoutachievedwas114.9%oftarget.

(3) Column(i)includesthenumberofRSUsgrantedin2019.Theseawardsvestratablyoneachofthefirstthreeanniversariesofthegrantdatesubjecttotheexecutive’scontinuedemploymentwiththeCompanythrougheachsuchanniversary.

(4) TheamountsreportedinthiscolumnrepresentthegrantdatefairvalueofawardsgrantedonFebruary22,2019,May10,2019andJuly29,2019,computedinaccordancewithASC718(forPRSUs,grantdatefairmarketvalueisbasedontheprobableoutcomeoftheperformanceconditionsonthegrantdate).

Additionalinformationconcerningourcashandequityincentiveawardsandplansmaybefoundinthesectionstitled“CompensationDiscussionandAnalysis—ElementsUsedtoAchieveCompensationPhilosophyandObjectives—AnnualCashIncentiveProgram”and“Long-TermIncentiveOpportunities,”respectively.

49

TABLE OF CONTENTS

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END 2019

ThefollowingtablepresentsinformationregardingtheoutstandingequityawardsheldbyournamedexecutiveofficersonDecember29,2019.ThistableincludesbothawardsoriginallygrantedbyKARpriortotheSpin-OffandawardsgrantedbyIAAaftertheSpin-Off.However,thistableonlyincludesawardswithrespecttosharesofIAAcommonstock,anddoesnotpresenttheportionofanyawardsthatwasconvertedintheSpin-OfftocoversharesofKARcommonstock.

Option Awards Stock Awards

Name (a)

Number of Securities

Underlying Unexercised

Options Unexercisable

(#) (c)

Option Exercise Price ($)

(e)

Option Expiration

Date (f)

Number of Shares or

Units of Stock That

Have Not Vested

(#)(g)

Market Value

of Shares or Units of Stock That

Have Not Vested

($)(h)

Equity Incentive

Plan Awards: Number of Unearned

Shares, Units or

Other Rights That Have

Not Vested (#)

(i)

Equity Incentive

Plan Awards: Market or

Payout Value of Unearned

Shares, Units or

Other Rights That

Have Not Vested

($) (j)

John Kett — — —

1,091(1) 50,601(1)

10,499(2) 486,944(2)

1,930(3) 89,513(3)

9,025(4) 418,580(4)

3,496(5) 162,144(5)

12,199(6) 565,790(6)

41,914(8) 46.97 7/29/2029 3,070(7) 144,474(7)Vance Johnston — — —

17,406(5) 807,282(5)

4,687(5) 217,383(5)

5,384(6) 249,756(6)

7,557(8) 46.97 7/29/2029 544(7) 25,695(7)

Tim O’Day — — —

484(1) 22,448(1)

1,454(2) 67,437(2)

832(3) 38,603(3)

1,251(4) 58,021(4)

1,471(5) 68,236(5)

1,690(6) 78,382(6)

33,811(8) 46.97 7/29/2029 2,477(7) 114,883(7)Sidney Peryar — — —

292(1) 13,525(1)

880(2) 40,814(2)

494(3) 22,918(3)

741(4) 34,368(4)

865(5) 40,106(5)

993(6) 46,055(6)

20,917(8) 46.97 7/29/2029 1,532(7) 71,054(7)Maju Abraham — — —

154(1) 7,138(1)

464(2) 21,520(2)

272(3) 12,633(3)

410(4) 19,016(4)

541(5) 25,078(5)

621(6) 28,802(6)

15,979(8) 46.97 7/29/2029 1,170(7) 54,265(7)

TABLE OF CONTENTS

(1) Thetotalamountsandvaluesincolumns(g)and(h)equalthetotalnumberofRSUsgrantedonFebruary24,2017thatvestratablyoneachofthefirstthreeanniversariesofthegrantdateduringthenamedexecutiveofficer’scontinuedemploymentwiththeCompanythrougheachsuchanniversary,multipliedbythemarketpriceofCompanycommonstockatthecloseofthelasttradingdayin2019,whichwas$46.38pershare.

(2) Thetotalamountsandvaluesincolumns(g)and(h)equalthetotalnumberofPRSUsgrantedonFebruary24,2017thathavemettheperformancemeasurementandnowhavetimerestrictedvestingcriteriafortheremainderoftheoriginalthree-yearperformanceperiod.TheperformanceperiodforthesePRSUswascompletedasoftheendof2019,andwehavereportedthesePRSUsatthelevelactuallyearnedupontheSpin-Off.

(3) Thetotalamountsandvaluesincolumns(g)and(h)equalthetotalnumberofRSUsgrantedonMarch2,2018thatvestratablyoneachofthefirstthreeanniversariesofthegrantdateduringthenamedexecutiveofficer’scontinuedemploymentwiththeCompanythrougheachsuchanniversary,multipliedbythemarketpriceofCompanycommonstockatthecloseofthelasttradingdayin2019,whichwas$46.38pershare.

(4) Thetotalamountsandvaluesincolumns(g)and(h)equalthetotalnumberofPRSUsgrantedonMarch2,2018thatthathavemettheperformancemeasurementandnowhavetimerestrictedvestingcriteriafortheremainderoftheoriginalthree-yearperformanceperiod.TheperformanceperiodforthesePRSUswascompletedasoftheendof2019,andwehavereportedthesePRSUsatthelevelactuallyearnedupontheSpin-Off.

(5) Thetotalamountsandvaluesincolumns(g)and(h)equalthetotalnumberofRSUsgrantedonFebruary22,2019(orMay10,2019,inthecaseofMr.Johnston)thatvestratablyoneachofthefirstthreeanniversariesofthegrantdateduringthenamedexecutiveofficer’scontinuedemploymentwiththeCompanythrougheachsuchanniversary,multipliedbythemarketpriceofCompanycommonstockatthecloseofthelasttradingdayin2019,whichwas$46.38pershare.

(6) Thetotalamountsandvaluesincolumns(i)and(j)equalthetotalnumberofPRSUsgrantedonFebruary22,2019(orMay10,2019,inthecaseofMr.Johnston)thatmaybeearnedandvestbasedontheachievementoftheperformancecriteriaandadditionaltimerestrictedvestingdescribedaboveintheCompensationDiscussionandAnalysis,multipliedbythemarketpriceofCompanycommonstockatthecloseofthelasttradingdayin2019,whichwas$46.38pershare.IncalculatingthenumberofPRSUsandtheirvalue,becausetheperformanceperiodforthesePRSUswascompletedasoftheendof2019,wehavereportedthesePRSUsatthelevelactuallyearned.

(7) Thetotalamountsandvaluesincolumns(g)and(h)equalthetotalnumberofRSUsgrantedonJuly29,2019thatvestratablyoneachofthefirstthreeanniversariesofthegrantdateduringthenamedexecutiveofficer’scontinuedemploymentwiththeCompanythrougheachsuchanniversary,multipliedbythemarketpriceofCompanycommonstockatthecloseofthelasttradingdayin2019,whichwas$46.38pershare.

(8) Thestockoptionsincolumns(b)and(e)weregrantedonJuly29,2019andmaybeearnedandvestoverathree-yearperiodfollowingthegrantdate.

51

TABLE OF CONTENTS

OPTION EXERCISES AND STOCK VESTED DURING FISCAL YEAR 2019

Thefollowingtablepresentsinformationregardingthevestingduring2019ofstockawardsgrantedtothenamedexecutiveofficers.ThistableincludesthevestingofbothawardsoriginallygrantedbyKARpriortotheSpin-OffandawardsgrantedbyIAAaftertheSpin-Off.

Option Awards Stock Awards

Name (a)

Number of Shares Acquired on Exercise (#)

(b)

Value Realized on Exercise ($)

(c)

Number of Shares Acquired on

Vesting (#) (d)

Value Realized on Vesting ($)

(e)

John Kett — — 16,572 $880,597

Vance Johnston — — — —

Tim O’Day — — 3,557 $181,741

Sidney Peryar — — 2,252 $115,230

Maju Abraham — — 1,129 $57,660

52

TABLE OF CONTENTS

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL TABLE

Theamountsinthetablebelowassumethattheterminationand/orchangeincontrol,asapplicable,waseffectiveasofDecember29,2019,thelastbusinessdayofthepriorfiscalyear.Thetableismerelyanillustrativeexampleoftheimpactofahypotheticalterminationofemploymentorchangeincontrol.Theamountsthatwouldactuallybepaiduponaterminationofemploymentcanonlybedeterminedatthetimeofsuchtermination,basedonthefactsandcircumstancesthenprevailing.

Named Executive Officer and Triggering Event

Cash Severance

Non- Equity

Incentive Pay(1)

Stock Options

(2)PRSUs

(3)RSUs

(4)

Excise Tax

Gross- Up(5)

Life Insurance

(6) Total

John Kett

• Death $33,332(9) $704,655 — $1,471,314 $444,645 — $800,000 $3,453,946

• Disability(7) $33,332(9) $704,655 — $1,471,314 $444,645 — — $2,653,946

• Retirement(8) — — — — — — — —

• Voluntary/forCause — — — — — — — —

• Terminationw/oCauseorforGoodReason $2,659,672(10) $704,655 — $954,594 — — — $4,318,921

• CIC(singletrigger) — — — — — — — $704,655

• TerminationafterCIC(doubletrigger) $3,972,842(10) $704,655 — $1,471,314 $444,645 — — $6,593,456

Vance Johnston

• Death $40,401(9) $448,188 — $251,194 $832,977 — $800,000 $2,292,760

• Disability(7) $40,401(9) $448,188 — $251,194 $832,977 — — $1,572,760

• Retirement(8) — — — — — — — —



• CIC(singletrigger) — — — — — — — —

• TerminationafterCIC(doubletrigger) $1,915,401(10) $448,188 — $251,194 $832,977 — — $3,447,760

Tim O’Day

• Death $34,131(9) $333,305 — $203,840 $244,170 — $800,000 $1,615,446

• Disability(7) $34,131(9) $333,305 — $203,840 $244,170 — — $815,446

• Retirement(8) — — — — — — — —





Sidney Peryar

• Death $11,234(9) $214,844 — $121,237 $147,603 — $800,000 $1,294,918

• Disability(7) $11,234(9) $214,844 — $121,237 $147,603 — — $494,918

• Retirement(8) — — — — — — — —


• Terminationw/oCauseorforGoodReason $891,659(10) $214,844 — $79,078 — — — $1,185,581



Maju Abraham

• Death $22,754(9) $161,148 — $69,338 $99,114 — $551,128 $903,482

• Disability(7) $22,754(9) $161,148 — $69,338 $99,114 — — $352,354

• Retirement(8) — — — — — — — —


• Terminationw/oCauseorforGoodReason $438,548(10) $161,148 — $43,798 — — — $643,494


• TerminationafterCIC(doubletrigger) $657,822(10) $161,148 — $69,338 $99,114 — — $987,422

TABLE OF CONTENTS

Footnotes to Potential Payments Upon Termination or Change in Control Table(1) Theamountsreportedareequaltothefullamountofthenamedexecutiveofficer’s2019annualbonus(aDecember29,2019

terminationresultsina100%payout,whereasaterminationonanyotherdatewouldresultinaproratedamount,assumingpaymentuponachangeincontrol),payableunderthetermsofsuchofficer’semploymentagreementorthe2019EquityPlan,asapplicable.

(2) TheamountsreportedassumeaCompanycommonstockpriceof$46.38,whichwastheclosingpriceonDecember29,2019.Allofthenamedexecutiveofficerhadoutstanding,unvestedoptionsasofsuchdate.Uponanamedexecutiveofficer’sterminationofemploymentduetodeathordisabilityorduetoaQualifyingTermination(asdefinedbelow)withintwoyearsfollowingachangeincontroloftheCompany(asdefinedinour2019EquityPlan),alloutstandingunvestedoptionswillbecomefullyvested.Alloutstandingunvestedoptionswouldalsogenerallybecomefullyvestediftheyarenotassumedorreplacedinthechangeincontrol.

(3) TheamountsreportedassumeaCompanycommonstockpriceof$46.38,whichwastheclosingpriceonDecember29,2019.Uponanamedexecutiveofficer’sterminationofemploymentduetodeathordisability,thenamedexecutiveofficerwillremaineligibletovestinanyoutstandingPRSUsthatareactuallyearnedbasedonperformance.Uponanamedexecutiveofficer’sterminationofemploymentduetoRetirementorduetoaQualifyingTermination(asdefinedbelow),thenamedexecutiveofficerwillremaineligibletovestinapro-rataportion(withthepro-rataportionbasedontheportionoftheperformanceperiodtheexecutiveremainedemployed,andincreasedbyanadditionalyearinthecaseofRetirement)ofanyoutstandingPRSUsthatareactuallyearnedbasedonperformance.Uponanamedexecutiveofficer’sterminationofemploymentduetoaQualifyingTerminationwithintwoyearsfollowingachangeincontroloftheCompany(asdefinedinour2019EquityPlan),alloutstandingPRSUswillbecomefullyvested(withvestingtobeataminimumofthetargetperformancelevel).AlloutstandingPRSUswouldalsogenerallybecomefullyvested(withvestingtobeataminimumofthetargetperformancelevel)iftheyarenotassumedorreplacedinthechangeincontrolwithatime-basedawardthatwouldcontinuetovestbasedsolelyoncontinuedemployment.Amountsreportedarebasedontheactualperformancelevelachievedfor2019.

(4) TheamountsreportedassumeaCompanycommonstockpriceof$46.38,whichwastheclosingpriceonDecember29,2019.Uponanamedexecutiveofficer’sterminationofemploymentduetodeathordisabilityorduetoaQualifyingTermination(asdefinedbelow)withintwoyearsfollowingachangeincontroloftheCompany(asdefinedinour2019EquityPlan),alloutstandingRSUswillbecomefullyvested.AlloutstandingunvestedRSUswouldalsogenerallybecomefullyvestediftheyarenotassumedorreplacedinthechangeincontrol.Uponanamedexecutiveofficer’sterminationofemploymentduetoRetirement,theexecutivewouldreceiveacceleratedvestingoftheRSUsthatwerescheduledtovestduringtheone-yearperiodfollowingRetirement.

(5) Nonamedexecutiveofficersareentitledtoanygross-uporsimilarpaymentstocoveranychangeincontrolexcisetaxestriggeredunderSections280Gand4999oftheCode.

(6) UndertheGroupTermLifePolicy,eachnamedexecutiveofficer’sdesignatedbeneficiaryisentitledtoapaymentinanamountequaltotwotimeshis/herannualsalary,notexceeding$800,000.

(7) Long-termdisabilityisaCompany-paidbenefitforallemployeesandthereforeisnotincludedinthistable.Thelong-termdisabilitybenefitisonlypaidaftersixmonthsonshort-termdisabilityandis66.67%ofbasepaycappedat$15,000permonth.

(8) NoneofthenamedexecutiveshavesatisfiedtheRetirementrequirementsunderthe2019EquityPlanandtheapplicableawardagreementsasofDecember29,2019(i.e.,nonehadreachedtheageof60andmettheapplicableageandservicerequirements),andthus,theywouldnothavebeenentitledtoaproratedpayoutoftheirannualbonusesoracceleratedvestingoftheirequityforaRetirementasofsuchdate.

(9) Underthetermsofeachnamedexecutiveofficer’semploymentagreement(otherthanwithrespecttoMr.Abraham),he/she(orhis/herestate)wouldbeentitledtoCOBRApremiumpaymentsfor18monthsintheeventofhis/herdeathorDisability.Mr.Abraham(orhisestate)wouldbeentitledtoCOBRApremiumpaymentsfor12monthsintheeventofhisdeathorDisability.

(10) Theseamountsareequalto(i)forMr.Kett,(a)aseverancemultipleoftwotimesthesumofMr.Kett’scurrentannualbasesalary($700,000asofDecember29,2019)and2019targetbonusamount;and(b)COBRApremiumpaymentsfor18months;and(ii)forallothernamedexecutiveofficersexceptMr.Abraham,(a)aseverancemultipleofoneandahalftimesthesumoftheofficer’scurrentannualbasesalary($520,000forMr.Johnston,$500,000forMr.O’Day,$400,000forMr.Peryar)and2019targetbonusamount;and(b)COBRApremiumpaymentsfor18months;and(iii)forMr.Abraham,(a)aseverancemultipleofonetimesthesumofhiscurrentannualbasesalary($300,000)and2019targetbonusamount;and(b)COBRApremiumpaymentsfor12months.TheseverancebenefitswillbeincreasedforeachnamedexecutiveofficerforaterminationofemploymentwithintwoyearsfollowingachangeincontroloftheCompanyunderthe2019EquityPlan.Mr.Abraham’sCOBRAbenefitsperiodwillcoverupto18monthsinsteadof12months,andthechangeincontrolseverancemultipleforMr.Kettisthree,thechangeincontrolseverancemultipleforMr.Abrahamisoneandonehalf,andthechangeincontrolseverancemultiplefortheothernamedexecutiveofficersistwoandonehalf.

54

TABLE OF CONTENTS

SECURITIES AUTHORIZED FOR ISSUANCE UNDEREQUITY COMPENSATION PLANS

Wecurrentlymaintaintwoequitycompensationplans:the2019EquityPlanandourEmployeeStockPurchasePlan(“ESPP”).Eachofthe2019PlanandtheESPPwasapprovedbyourstockholders.

Thefollowingtablesetsforth,foreachofourequitycompensationplans,thenumberofsharesofcommonstocksubjecttooutstandingawards,theweighted-averageexercisepriceofoutstandingoptions,andthenumberofsharesremainingavailableforfutureawardgrantsasofDecember29,2019.

Plan category

Number of securities to be issued

upon exercise of outstanding options, warrants and rights)

(1) (a)

Weighted-averageexercise price of

outstanding options, warrants

and rights (b)

Number of securities remaining available for future issuance under

equity compensation plans(excluding shares reflected

in column (a)) (c)

Equitycompensationplansapprovedbystockholders 2,150,631(1) $21.57(2) 3,150,507(3)

(1) Oftheseshares,901,011weresubjecttooptions,987,620weresubjecttoRSUsand262,000weresubjecttoPRSUs.(2) Thisweighted-averageexercisepricedoesnotreflectthesharesthatwillbeissueduponthepaymentofoutstandingRSUsand

PRSUsandiscalculatedsolelywithrespecttooutstandingunexercisedstockoptions.(3) Represents2,161,011sharesavailableforfutureissuanceunderthe2019Plan,and989,496sharesavailableforfuture

issuanceundertheESPP.Sharesavailableunderthe2019Planmaybeusedforanytypeofawardauthorizedinthe2019Plan(subjecttocertainlimitationsofthe2019Plan)includingstockoptions,stockappreciationrights,stockunits,restrictedstock,performance-basedawards,stockbonusesandotherawardspayableinshareofourcommonstock.

55

TABLE OF CONTENTS

EMPLOYMENT AGREEMENTS WITH NAMED EXECUTIVE OFFICERS

FollowingtheSpin-Off,weenteredintonewemploymentagreementswitheachofournamedexecutiveofficers.ThesenewagreementsreplacedanyprioremploymentagreementsthatwereinplacewhiletheexecutiveswereemployedbyKAR.

Asummaryofsomeofthekeytermsofthenewemploymentagreementswithournamedexecutiveofficersisincludedbelow.

Term.Theemploymentagreementforeachnamedexecutiveofficerhasaninitialthree-yeartermwhichwillautomaticallyrenewforadditionalsuccessiveone-yeartermsunlesseitherIAAoranynamedexecutiveofficergivesnoticeofnon-renewalwithinsixtydayspriortotheendofanyapplicableterm.

Base Salary and Bonus.Theemploymentagreementforeachnamedexecutiveofficerentitlestheexecutivetoreceiveaminimumannualbasesalaryamountandtargetannualincentivebonusamount.

Equity Awards.Eachnamedexecutiveofficeriseligibletoparticipateinour2019EquityPlan.Anygrantsmadetothenamedexecutiveofficersunderour2019EquityPlanwillbedeterminedbyourCompensationCommitteeinitsdiscretion.

Other Benefits.Eachnamedexecutiveofficeriseligibletoparticipateinourbenefitplansandprogramsgenerallyavailabletoourexecutiveofficers.EachnamedexecutiveofficerwillalsobeentitledtoanannualautomobileallowanceonthesametermsasineffectatthetimeoftheSpin-Off,upto$3,500annuallyforanannualexecutivephysical,andreimbursementforthecostsofanidentitytheftprotectionplan.

Severance Terms.IftheCompanyterminatesanamedexecutiveofficer’semploymentwithoutcause,providesnoticethatanamedexecutiveofficer’semploymentagreementwillnotbeextendedorfurtherextended,orifanamedexecutiveofficerterminateshisemploymentforgoodreasonasdefinedintheemploymentagreement(each,a“QualifyingTermination”),theexecutivewillbeentitledtoreceive:(i)aseverancepaymentequaltoamultipleoftheexecutive’sbasesalarythenineffectplustheexecutive’stargetannualbonusfortheyearoftermination,payableinsubstantiallyequalinstallmentsovertheapplicableseveranceperiod,(ii)paymentofapro-rataportionofanyannualbonusactuallyearnedfortheyearoftermination,and(iii)reimbursementofpremiumstocontinuebenefitscoverageunderCOBRAforupto18months(or12monthsinthecaseofMr.Abraham).TheseverancemultipleforMr.Kettistwo,theseverancemultipleforMr.Abrahamisone,andtheseverancemultiplefortheothernamedexecutiveofficersisoneandonehalf.

If,withintwoyearsfollowingachangeincontroloftheCompany(whichhasthesamemeaningasinour2019EquityPlan),anamedexecutiveofficerexperiencesaQualifyingTermination,eachnamedexecutiveofficer’sseverancemultipleisincreasedandallofthenamedexecutiveofficer’soutstandingandunvestedequityawardsgrantedunderour2019EquityPlanwillreceivefullacceleratedvesting(withanyin-progressperformance-basedawardstovestataminimumofthetargetperformancelevel).Mr.Abraham’sCOBRAbenefitsperiodwillalsocoverupto18monthsinsteadof12months.ThechangeincontrolseverancemultipleforMr.Kettisthree,thechangeincontrolseverancemultipleforMr.Abrahamisoneandonehalf,andthechangeincontrolseverancemultiplefortheotherNamedExecutivesistwoandonehalf.

Ifanamedexecutiveofficer’semploymentterminatesasaresultoftheexecutive’sdeathordisability,theexecutivewillbeentitledtoreceive:(i)paymentofapro-rataportionofanyannualbonusactuallyearnedfortheyearoftermination,and(ii)reimbursementofpremiumstocontinuebenefitscoverageunderCOBRAforupto18months(or12monthsinthecaseofMr.Abraham).

Nonamedexecutiveofficerisentitledtoreceivea“gross-up”orsimilarpaymentforanyexcisetaxesthatmaybecomepayableinconnectionwithachangeincontrolpursuanttoSections280Gand4999oftheCode,and,dependingonwhatresultsinthebestafter-taxbenefitfortheexecutive,benefitsmaybe“cutback”insteadinsuchcircumstances.

Release Requirement and Restrictive Covenants.Eachnamedexecutiveofficer’sreceiptoftheseverancebenefitsdescribedaboveissubjecttotheexecutive’sexecutionofareleaseofclaimsinfavorofIAAandcompliancewiththeownershipofworkproductandnondisclosurerestrictions,aswellasone-yearnoncompetitionandnonsolicitationrestrictions,containedineachexecutive’semploymentagreement.

56

TABLE OF CONTENTS

PROPOSAL NO. 3: ADVISORY APPROVAL OF THEFREQUENCY OF FUTURE ADVISORY VOTES ON NAMED

EXECUTIVE OFFICER COMPENSATION

GENERAL

InaccordancewiththerequirementsofSection14AoftheExchangeActandtherelatedrulesoftheSEC,weareaskingourstockholderstovote,onanon-binding,advisorybasis,fortheirpreferenceastohowfrequentlyweshouldseekfutureadvisoryvotesonthecompensationofournamedexecutiveofficers.ByvotingwithrespecttothisProposalNo.3,stockholdersmayindicatewhethertheywouldpreferthatweconductfutureadvisoryvotesonexecutivecompensationeveryone,two,orthreeyears.Stockholdersalsomay,iftheywish,abstainfromvotingonthisProposalNo.3.

Aftercarefulconsideration,ourBoardcurrentlybelievesthatadvisoryvotesonexecutivecompensationshouldbeconductedeveryyearsothatstockholdersmayannuallyexpresstheirviewsonourexecutivecompensationprogram.

WerecognizethatstockholdersmayhavedifferentviewsastothebestapproachfortheCompany,andthereforewelookforwardtohearingfromourstockholdersastotheirpreferencesonthefrequencyoffutureadvisoryvotesonexecutivecompensation.

ThisvoteisadvisoryandnotbindingonusorourBoard.However,theBoardandtheCompensationCommitteewilltakeintoaccounttheoutcomeofthevotewhenconsideringthefrequencyoffutureadvisoryvotesonexecutivecompensation.TheBoardmaydecidethatitisinthebestinterestsofourstockholdersandtheCompanytoholdanadvisoryvoteonexecutivecompensationmoreorlessfrequentlythanthefrequencyreceivingthemostvotescastbyourstockholders.

Stockholderswillbeprovidedtheopportunitytochooseamongfouroptions(holdingthevoteeveryone,twoorthreeyears,orabstaining)and,therefore,stockholderswillnotbevotingtoapproveordisapprovetherecommendationoftheBoard.

VOTE STANDARD

UnderourBylaws,approval,onanadvisorybasis,ofthefrequencyoffutureadvisoryvotesonnamedexecutiveofficercompensationrequirestheaffirmativevoteofamajorityofthesharesofcommonstockrepresentedattheAnnualMeetingandentitledtovoteonProposalNo.3.However,ifnofrequencyoptionreceivestheaffirmativevoteofamajorityofthesharesofcommonstockrepresentedattheAnnualMeetingandentitledtovoteonProposalNo.3,ourBoardwillconsidertheoptionreceivingthehighestnumberofaffirmativevotesasthepreferredfrequencyoptionofourstockholders.Abstentionsandbrokernon-voteswillnotbecountedindeterminingthefrequencyoptionreceivingthehighestnumberofaffirmativevotes.

✔ The Board recommends that you vote “1 YEAR” as the preferredfrequency for future advisory votes on named executive officercompensation.

Proxies solicited by the Board will be voted “1 YEAR” as the preferred frequency for future advisoryvotes on named executive officer compensation unless stockholders specify a contrary vote.

57

TABLE OF CONTENTS

PROPOSAL NO. 4: RATIFICATION OF INDEPENDENTREGISTERED PUBLIC ACCOUNTING FIRM

GENERAL

TheAuditCommitteehasappointedKPMGLLP(“KPMG”)toserveastheCompany’sindependentregisteredpublicaccountingfirmforitsfiscalyearendingDecember27,2020.TheAuditCommitteeandtheBoardseektohaveourstockholdersratifytheAuditCommittee’sappointmentofKPMG,whichhasservedastheCompany’sindependentregisteredpublicaccountingfirmsince2018.

AdditionalinformationregardingKPMG,includingthefeeswepaidtoKPMGinfiscal2019,canbefoundinthisProxyStatementunderthecaption“FeesPaidtoKPMGLLP.”ThereportoftheAuditCommitteeincludedinthisProxyStatementunderthecaption“ReportoftheAuditCommittee”alsocontainsinformationabouttheroleofKPMGwithrespecttotheauditoftheCompany’sannualfinancialstatements.

RepresentativesofKPMGwillbepresentattheAnnualMeetingandwillhavetheopportunitytomakeastatement,iftheydesiretodoso,andtorespondtoappropriatequestions.

StockholderratificationoftheappointmentofKPMGasourindependentregisteredpublicaccountingfirmisnotrequiredbyourBylawsorotherwise.However,theBoardissubmittingtheappointmentofKPMGtothestockholdersforratificationasamatterofgoodcorporategovernance.Ifthestockholdersfailtoratifytheappointment,theAuditCommitteemayreconsiderwhetherornottoretainKPMG.Eveniftheappointmentisratified,theAuditCommittee,initsdiscretion,mayappointadifferentindependentauditoratanytimeduringtheyeariftheAuditCommitteedeterminesthatsuchachangewouldbeinthebestinterestsoftheCompanyandourstockholders.

VOTE STANDARD

RatificationoftheappointmentofKPMGasourindependentregisteredpublicaccountingfirmrequirestheaffirmativevoteofamajorityofthesharesofcommonstockrepresentedattheAnnualMeetingandentitledtovoteonProposalNo.4.Abstentionswillhavethesameeffectasavote“AGAINST”ProposalNo.4.Therewillbenobrokernon-votesonProposalNo.4.

✔ The Board recommends that you vote “FOR” the ratification of theappointment of KPMG as our independent registered publicaccounting firm for 2020.

Proxies solicited by the Board will be voted “FOR” the ratification of the appointment of KPMG as ourindependent registered public accounting firm for 2020 unless stockholders specify a contrary vote.

58

TABLE OF CONTENTS

REPORT OF THE AUDIT COMMITTEE TheAuditCommitteeiscomprisedofthreeindependentdirectors:Ms.GoveandMessrs.BaleandKamin.TheBoardhasdeterminedthateachmemberoftheAuditCommitteemeetstheenhancedindependencestandardsforAuditCommitteemembersassetforthinapplicablerulesoftheNYSEandtheSECandthateachofMs.GoveandMessrs.BalesandKaminqualifyasanauditcommitteefinancialexpert.TheAuditCommitteeoperatesunderawrittencharteradoptedbytheBoard,whichisavailableintheGovernancesectionofourInvestorRelationswebsiteathttps://investors.iaai.com.

TheAuditCommitteeassiststheBoardinfulfillingitslegalandfiduciaryobligationswithrespecttomattersinvolvingtheaccounting,auditing,financialreporting,internalcontrolandlegalcompliancefunctionsoftheCompany.Inthatrole,theAuditCommitteeoverseesourfinancialreportingprocessonbehalfoftheBoard.Ourmanagementhastheprimaryresponsibilityforourfinancialstatementsandthereportingprocess,includingtheCompany’ssystemsofinternalcontrols.KPMG,ourindependentregisteredpublicaccountingfirmfor2019,isresponsibleforexpressingopinionsontheconformityoftheCompany’sauditedconsolidatedfinancialstatementswithgenerallyacceptedaccountingprinciples.

TheAuditCommitteediscusseswithKPMGtheoverallscopeandplansforitsquarterlyreviewsandannualauditoftheCompany’sconsolidatedfinancialstatements.TheAuditCommittee,atleastquarterly,meetswithmanagement,includingtheCompany’sChiefFinancialOfficer,andrepresentativesofKPMG,includinginseparateexecutivesessions,todiscusstheconsolidatedfinancialstatements,theresultsofKPMG’sreviewandauditoftheconsolidatedfinancialstatementsandtheoverallqualityoftheCompany’sfinancialreportingandcomplianceprograms.

Infulfillingitsoversightresponsibilitiesduringthefiscalyear,theAuditCommitteereviewedanddiscussedwithmanagementtheauditedconsolidatedfinancialstatementsandrelatedfinancialstatementdisclosuresincludedinourAnnualReportonForm10-KforthefiscalyearendedDecember29,2019.Also,theAuditCommitteereviewedanddiscussedwithKPMGthemattersrequiredtobediscussedbytheapplicablerequirementsofthePublicCompanyAccountingOversightBoard(“PCAOB”)andtheSEC.TheAuditCommitteereceivedthewrittendisclosuresandtheletterfromKPMGrequiredbyapplicablerequirementsofthePCAOBregardingtheindependentauditors’communicationswiththeAuditCommitteeconcerningindependence,andhasdiscussedKPMG’sindependencewithKPMG.TheAuditCommitteehasalsoreviewednon-auditservicesperformedbyKPMGandconsideredwhetherKPMG’sprovisionofnon-auditserviceswascompatiblewithmaintainingitsindependencefromtheCompany.

Basedonthereviewsanddiscussionsreferredtoabove,theAuditCommitteerecommendedtotheBoardthattheauditedconsolidatedfinancialstatementsbeincludedinourAnnualReportonForm10-KforthefiscalyearendedDecember29,2019.TheAuditCommitteealsoappointedKPMGtoserveastheCompany’sindependentregisteredpublicaccountingfirmforthefiscalyearendingDecember27,2020.ThemembersoftheAuditCommitteebelievethatthecontinuedretentionofKPMGtoserveastheCompany’sindependentregisteredpublicaccountingfirmisinthebestinterestsoftheCompanyanditsstockholders.

AlthoughtheAuditCommitteehasthesoleauthoritytoappointtheindependentauditors,theAuditCommitteeisrecommendingthattheBoardaskourstockholderstoratifytheappointmentoftheindependentauditorsatourAnnualMeeting.ThisreportissubmittedbySueGove,BrianBalesandPeterH.Kamin.

The Audit Committee

Sue Gove (Chair) Brian Bales Peter Kamin

59

TABLE OF CONTENTS

FEES PAID TO KPMG LLP ThetablebelowsetsforththeaggregatefeeschargedtoIAAbyKPMGforauditservicesrenderedinconnectionwiththeauditofourconsolidatedfinancialstatementsandreportforfiscal2019andforotherservicesrenderedduringfiscal2019toIAAanditssubsidiaries,aswellasallout-of-pocketcostsincurredinconnectionwiththeseservices.FeesbilledbyKPMGtotheCompany’sformerparent,KAR,forperiodspriortotheSpin-Offarenotincludedbelow.

Fee Category 2019

AuditFees(1) $1,343,597

Audit-RelatedFees —

TaxFees —

AllOtherFees(2) 1,600

Total Fees $1,345,197

(1) Audit Fees: Consistsoffeesandexpensesforprofessionalservicesrenderedfortheauditofourconsolidatedfinancialstatements,reviewoftheinterimcondensedconsolidatedfinancialstatementsincludedintheCompany’squarterlyreports,andservicesthatarenormallyprovidedbyindependentregisteredpublicaccountingfirmsinconnectionwithstatutoryandregulatoryfilingsorengagements,andattestservices,exceptthosenotrequiredbystatuteorregulation.

(2) All Other Fees: ConsistsprincipallyofalicensetouseKPMG’saccountingresearchsoftware.

POLICY ON AUDIT COMMITTEE PRE-APPROVAL OF AUDIT AND PERMISSIBLE NON-AUDIT SERVICES

OF KPMG TheAuditCommitteehasapolicyforthepre-approvalofallauditandpermissiblenon-auditservicesprovidedbyKPMG.Underthispolicy,theAuditCommitteeannuallyreviewsandpre-approvescertainauditandnon-auditservicesthatmaybeprovidedbyKPMGandestablishesapre-approvedaggregatefeelevelfortheseservices.Anyproposedservicesnotincludedwithinthelistofpre-approvedservicesoranyproposedservicesthatwillcausetheCompanytoexceedthepre-approvedaggregateamountrequiresspecificpre-approvalbytheAuditCommittee.Inaddition,Ms.Gove,astheChairoftheAuditCommittee,hasbeendelegatedauthoritytoactbetweenmeetingsoftheAuditCommitteetoreviewandpre-approverequestsforauditorpermittednon-auditedservicesproposedtobeprovidedtoIAAbyKPMGthatwerenototherwisepre-approvedbytheAuditCommittee;provided,however,thatanysuchpre-approvalbyMs.GovewillbereportedtotheAuditCommitteeatitsnextscheduledmeeting.TheAuditCommitteepre-approvedallauditandpermissiblenon-auditservicesprovidedbyKPMGinfiscal2019inaccordancewiththispre-approvalpolicy.

60

TABLE OF CONTENTS

CERTAIN RELATIONSHIPS AND RELATED PERSONTRANSACTIONS

OurBoardhasadoptedawrittenrelatedpersonstransactionspolicy,thepurposeofwhichistodescribetheproceduresusedtoidentify,review,approveanddisclose,ifnecessary,anytransaction,arrangementorrelationship(oranyseriesofsimilartransactions,arrangementsorrelationships)inwhich(a)theCompany(includinganyofitssubsidiaries)was,isorwillbeaparticipant,(b)theamountinvolvedexceeds$120,000and(c)anyrelatedpersonhad,hasorwillhaveadirectorindirectmaterialinterest.Forpurposesofthepolicy,arelatedpersonis(a)anypersonwhois,oratanytimesincethebeginningoftheCompany'slastfiscalyearwas,adirectororexecutiveofficeroftheCompanyoranomineetobecomeadirectoroftheCompany,(b)anypersonwhoisknowntobethebeneficialownerofmorethan5%ofanyclassoftheCompany'svotingsecurities,(c)anyimmediatefamilymemberofanyoftheforegoingpersons,or(d)anyfirm,corporationorotherentityinwhichanyoftheforegoingpersonsisemployedorisageneralpartnerorprincipalorinasimilarpositionorinwhichsuchpersonhasamorethan5%beneficialownershipinterest.

Underthepolicy,ourAuditCommitteeisresponsibleforreviewing,considering,approvingandratifying,asapplicable,eachrelatedpersontransaction.Inthecourseofthereviewandapprovalofarelatedpersontransaction,theAuditCommitteemayconsiderthefollowingfactors:

• therelationshipoftherelatedpersontotheCompanyandnatureoftherelatedperson’sinterestinthetransaction;

• thematerialtermsofthetransaction,including,withoutlimitation,theamountandtypeoftransaction;

• thebenefitstotheCompanyoftheproposedtransaction;

• ifapplicable,theavailabilityofothersourcesofcomparableproductsorservices;and

• anassessmentofwhethertheproposedtransactionisontermsthatarenolessfavorablethantermsgenerallyavailabletoanunaffiliatedthirdpartyunderthesameorsimilarcircumstances.

TherewerenorelatedpersontransactionsrequiredtobedisclosedinthisProxyStatementfor2019.

61

TABLE OF CONTENTS

PROPOSALS AND NOMINATIONS FOR 2021 ANNUALMEETING OF STOCKHOLDERS

STOCKHOLDER PROPOSALS FOR INCLUSION IN PROXY MATERIALS

AstockholderseekingtohaveaproposalincludedintheCompany’sproxystatementforthe2021annualmeetingofstockholdersmustcomplywithRule14a-8undertheExchangeAct,whichsetsforththerequirementsforincludingstockholderproposalsinCompany-sponsoredproxymaterials.InaccordancewithRule14a-8,anysuchproposalmustbereceivedbytheCompany’sSecretaryattheCompany’sprincipalexecutiveofficesatIAA,Inc.,TwoWestbrookCorporateCenter,Suite500,Westchester,Illinois60154by120dayspriortoApril23,2021,whichis120dayspriortotheone-yearanniversaryofthedatethisProxyStatementwasfirstmailedormadeavailabletostockholders.However,ifthedateofthe2021annualmeetingofstockholderschangesbymorethan30daysfromtheone-yearanniversaryofthedateoftheAnnualMeeting,thensuchproposalsmustbereceivedareasonabletimebeforetheCompanybeginstoprintandsenditsproxymaterialsforthe2021annualmeetingofstockholders.

NOMINATIONS OF DIRECTOR CANDIDATES AND STOCKHOLDER PROPOSALS NOT INTENDED FOR INCLUSION IN PROXY MATERIALS

TheCompany’sBylawsestablishanadvancenoticeprocedurewithregardtodirectornominationsandstockholderproposalsthatarenotsubmittedforinclusionintheproxystatement,butthatastockholderinsteadwishestopresentdirectlyatanannualmeeting.Tobeproperlybroughtbeforethe2021annualmeetingofstockholders,anoticeofthenominationortheproposalthestockholderwishestopresentattheannualmeetingofstockholdersmustbedeliveredtotheSecretaryattheCompany’sprincipalexecutiveofficesatIAA,Inc.,TwoWestbrookCorporateCenter,Suite500,Westchester,Illinois60154,notearlierthanFebruary17,2021,whichisonehundredtwenty(120)dayspriortothefirstanniversaryofthedateofthisyear’sAnnualMeeting,andnotethanMarch19,2021,whichisninety(90)dayspriortothefirstanniversaryofthedateofthisyear’sAnnualMeeting(provided,however,thatintheeventthatthe2021annualmeetingofstockholdersiscalledforadatethatisnotwithintwenty-five(25)daysbeforeoraftersuchanniversarydate,noticebythestockholderinordertobetimelymustbesoreceivednotlaterthanthecloseofbusinessonthetenth(10th)dayfollowingthedayonwhichsuchnoticeofthedateofthe2021annualmeetingofstockholderswasmailedorsuchpublicdisclosureofthedateofthe2021annualmeetingofstockholderswasmade,whicheverfirstoccurs).AlldirectornominationsandstockholderproposalsmustcomplywiththerequirementsofArticleII,Section4theCompany’sBylaws.

StockholderproposalsordirectornominationssubmittedtotheCompany’sSecretarythatdonotcomplywiththeaboverequirementsmaynotbebroughtbeforethe2021annualmeetingofstockholders.

62

TABLE OF CONTENTS

QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE ANNUAL MEETING

Q: Why am I receiving these materials?A: WeareprovidingtheseproxymaterialstoyouinconnectionwiththeBoard’ssolicitationofproxiestobe

votedattheCompany’sAnnualMeetingandatanyadjournmentsorpostponementsthereof.StockholdersareinvitedtoattendtheAnnualMeetingtobeheldviaaliveaudiowebcastonJune17,2020,beginningat9:00a.m.,EasternDaylightTime,atwww.virtualshareholdermeeting.com/IAA2020,wherestockholderswillbeabletolistentothemeetinglive,submitquestionsandvoteonline.Youwillneedthe16-digitcontrolnumberprovidedonyourNotice(asdefinedbelow),oronyourproxycardorvotinginstructionformthataccompaniedyourproxymaterials.OurproxymaterialsarefirstbeingdistributedtostockholdersonoraboutApril23,2020.

Inaddition,pursuanttoSECrules,wehaveelectedtoprovideaccesstoourproxymaterialsovertheInternet.Accordingly,wearesendingaNoticeofInternetAvailabilityofProxyMaterials(the“Notice”)toourstockholdersofrecord,whilebrokers,banksandothernomineeswhoholdsharesonbehalfofbeneficialownerswillbesendingtheirownsimilarNoticetothebeneficialowners.Allstockholderswillhavetheabilitytoaccesstheproxymaterials,includingthisProxyStatementandour2019AnnualReport,onthewebsitereferredtointheNoticeortorequesttoreceiveaprintedcopyoftheproxymaterials.Instructionsonhowtorequestaprintedcopybymailorelectronically,includinganoptiontorequestpapercopiesonanongoingbasis,maybefoundintheNoticeandonthewebsitereferredtointheNotice.

Q: What proposals will be voted on, what is the Board’s voting recommendation, and what are thestandards for determining whether a proposal has been approved?

A: Proposal Voting Choices and Board Recommendation

Voting Standard

Effect of Abstention

Effect of Broker Non-Vote

1. Election ofDirectors

• Vote“FOR”anynominee Morevotes“FOR”than“AGAINST”

Noeffect Noeffect

• Vote“AGAINST”anynominee

• Abstainfromvotingforspecificnominees

The Board recommends a vote “FOR”each of the three Class I directornominees.

2. Advisory Vote toApprove NamedExecutive OfficerCompensation

• Vote“FOR”theadvisoryproposal MajorityofthesharesrepresentedattheAnnualMeetingandentitledtovoteonProposalNo.2

Voteagainst Noeffect

• Vote“AGAINST”theadvisoryproposal

• Abstainfromvotingontheadvisoryproposal

The Board recommends a vote “FOR” theadvisory vote to approve thecompensation of our named executiveofficers.

63

TABLE OF CONTENTS

3. Advisory Vote onFrequency ofFuture AdvisoryVotes on NamedExecutive OfficerCompensation

• Voteforholdingthesay-on-payvoteevery“1YEAR”

Thefrequencyoptionreceivingthehighestnumberofaffirmativevoteswillbeconsideredthepreferredfrequencyoptionofstockholders

Noeffect Noeffect

• Voteforholdingthesay-on-payvoteevery“2YEARS”

• Voteforholdingthesay-on-payvoteevery“3YEARS”

• Abstainfromvotingontheadvisoryproposal

The Board recommends a vote of“1 YEAR” as the preferred frequency forfuture advisory votes on named executiveofficer compensation

4. Ratification ofIndependentRegisteredAccounting Firm

• Vote“FOR”theratification MajorityofthesharesrepresentedattheAnnualMeetingandentitledtovoteonProposalNo.4

Voteagainst Notapplicable

• Vote“AGAINST”theratification

• Abstainfromvotingontheratification

The Board recommends a vote “FOR” theratification of the appointment of KPMGas our independent registered accountingfirm for 2020.

Q: Who is entitled to vote?A: OnlytheholdersofrecordofthesharesofourcommonstockatthecloseofbusinessonApril20,2020,

therecorddate,areentitledtonoticeofandtovoteattheAnnualMeeting.EachshareofcommonstockisentitledtoonevoteoneachmattervoteduponattheAnnualMeeting.Asoftherecorddate,133,948,593sharesofcommonstockwereoutstanding.

Q: What is the difference between holding shares as a stockholder of record and as a beneficialowner?

A: Stockholder of Record.IfyoursharesareregistereddirectlyinyournamewiththeCompany’stransferagent,AmericanStockTransfer&TrustCompany,LLC,youareconsidereda“stockholderofrecord”withrespecttothoseshares.Asthestockholderofrecord,youhavetherighttograntyourvotingproxydirectlytotheCompanyortovoteinpersononlineduringtheAnnualMeeting.

Beneficial Owner.Ifyoursharesareheldbyabroker,bankorothernominee,youholdyoursharesin“streetname”andareconsidereda“beneficialowner”withrespecttothoseshares.Theseproxymaterialsarebeingforwardedtoyoubyyourbroker,bankorothernomineewhoisconsideredthestockholderofrecordwithrespecttothoseshares.Asthebeneficialowner,youhavetherighttodirectyourbroker,bankorothernomineeonhowtovoteyoursharesandarealsoinvitedtoattendtheAnnualMeeting.

Q: What is a broker non-vote?A: Ifyouholdyoursharesofcommonstockinstreetnamethroughabrokerageaccountandyoudonot

submitvotinginstructionstoyourbroker,yourbrokermaygenerallyvoteyoursharesinitsdiscretiononroutinematters.However,abrokercannotvotesharesheldinstreetnameonnon-routinemattersunlessthebrokerreceivesvotinginstructionsfromthestreetnameholder.ProposalNo.4(theratificationoftheappointmentofKPMGasourindependentregisteredpublicaccountingfirmfor2020)isconsideredroutineunderapplicablerulesoftheNYSE,whileeachoftheotherproposalstobesubmittedforavoteofstockholdersattheAnnualMeetingisconsiderednon-routine.Accordingly,ifyouholdyoursharesofcommonstockinstreetnamethroughabrokerageaccountandyoudonotsubmitvotinginstructionstoyourbroker,yourbrokermayexerciseitsdiscretiontovoteonProposalNo.4attheAnnualMeeting,butwillnotbepermittedtovoteyoursharesonanyoftheotherproposalsattheAnnualMeeting.Ifyourbrokerexercisesthisdiscretion,yourshareswillbecountedaspresentfordeterminingthepresenceofaquorumattheAnnualMeetingandwill

64

TABLE OF CONTENTS

bevotedonProposalNo.4inthemannerdirectedbyyourbroker,butyourshareswillconstitute“brokernon-votes”oneachoftheotheritemsattheAnnualMeeting.

Q: How can I vote my shares and participate at the 2019 annual meeting?A: StockholdersmayparticipateintheAnnualMeetingbyvisitingthefollowingwebsite:

www.virtualshareholdermeeting.com/IAA2020.ToparticipateintheAnnualMeeting,youwillneedthecontrolnumberprovidedonyourNotice,oronyourproxycardorvotinginstructionformthataccompaniedyourproxymaterials.

EvenifyouplantoattendtheAnnualMeeting,westronglyrecommendthatyouvoteyoursharesinadvanceasdescribedbelowsothatyourvotewillbecountedifyoulaterdecidenottoattendtheAnnualMeeting.See“HowcanIvotemyshareswithoutattendingtheAnnualMeeting?”below.

OurvirtualAnnualMeetingallowsstockholderstosubmitquestionsandcommentsbeginningat8:45a.m.EasternDaylightTimeonthedateofthemeetingandduringthemeeting.Afterthemeeting,wewillanswerasmanystockholderquestionsaswecanwithintheallottedtimeforourmeetingandthatcomplywiththemeetingrulesofconduct;therulesofconductwillbepostedonthevirtualmeetingwebportal.Totheextenttimedoesn’tallowustoansweralloftheappropriatelysubmittedquestions,wewillanswertheminwritingonourinvestorrelationswebsite,athttps://investors.iaai.com/,soonafterthemeeting.Ifwereceivesubstantiallysimilarquestions,wewillgroupsuchquestionstogetherandprovideasingleresponsetoavoidrepetition.

TheAnnualMeetingwillbeginpromptlyat9:00a.m.,EasternDaylightTime.WeencourageyoutoaccesstheAnnualMeetingpriortothestarttime.Pleaseallowampletimeforonlinecheck-in,whichwillbeginat8:45a.m.EasternDaylightTime.

WeareholdingtheAnnualMeetingonlineandprovidingInternetvotingtoprovideexpandedaccessandtoallowyoutovoteyoursharesonlineduringtheAnnualMeeting,withproceduresdesignedtoensuretheauthenticityandcorrectnessofyourvotinginstructions.However,pleasebeawarethatyoumustbearanycostsassociatedwithyourInternetaccess,suchasusagechargesfromInternetaccessprovidersandtelephonecompanies.

Q: How can I vote my shares without attending the Annual Meeting?A: Ifyouholdyoursharesdirectlyasthestockholderofrecord,youmayvotewithoutattendingtheAnnual

Meetinginoneofthefollowingmanners:

By Internet.Gotowww.proxyvote.comandfollowtheinstructions.Youwillneedthecontrolnumberincludedonyourproxycard;

By Telephone.Dial1-800-690-6903.Youwillneedthecontrolnumberincludedonyourproxycard;or

By Mail.Complete,dateandsignyourproxycardandmailitusingtheenclosed,pre-paidenvelope.

IfyouvoteontheInternetorbytelephone,youdonotneedtoreturnyourproxycard.Internetandtelephonevotingforstockholderswillbeavailable24hoursaday,andwillcloseat11:59p.m.,EasternDaylightTime,onJune16,2020.Ifyouchoosetovotebymail,yourproxycardmustbereceivedby11:59p.m.,EasternDaylightTime,onJune16,2020inorderforyoursharestobevotedatthemeeting.

Ifyouholdyoursharesofcommonstockinstreetname,youwillreceiveinstructionsfromyourbroker,bankorothernomineeonhowtovoteyourshares.Yourbroker,bankorothernomineewillallowyoutodeliveryourvotinginstructionsovertheInternetandmayalsopermityoutovotebytelephone.Inaddition,ifyoureceivedaprintedcopyofthisProxyStatement,youmaysubmityourvotinginstructionsbycompleting,datingandsigningthevotinginstructionformthatwasincludedwiththisProxyStatementandpromptlyreturningitinthepreaddressed,postagepaidenvelopeprovidedtoyou.IfyouvotebyInternetortelephone,thenyouneednotreturnawrittenvotinginstructionformbymail.Pleasecomplywiththedeadlinesforvotingincludedinthevotinginstructionformprovidedbythebroker,bankorothernomineethatholdsyourshares.

Q: What is the quorum requirement for the Annual Meeting?A: AquorumofstockholdersisnecessarytoholdtheAnnualMeeting.AquorumattheAnnualMeetingexists

if

65

TABLE OF CONTENTS

theholdersofamajorityoftheCompany’scommonstockissuedandoutstandingandentitledtovoteattheAnnualMeetingispresentinpersonorrepresentedbyproxy.Abstentionsandbrokernon-votesarecountedaspresentforestablishingaquorum.

Q: What happens if I do not give specific voting instructions?A: Stockholder of Record.Ifyouareastockholderofrecordandyousignandreturnaproxycardwithout

givingspecificvotinginstructionsononeormoreoftheproposals,thentheproxyholderswillvoteyoursharesinthemannerrecommendedbytheBoardonthoseproposalsaspresentedinthisProxyStatement.

Beneficial Owner.Ifyouholdyoursharesofcommonstockinstreetnamethroughabroker,bankornominee,pleaserefertotheinstructionsprovidedbythebroker,bankorothernomineethatholdsyoursharesforanexplanationofhowyourshareswillbevotedifyousignandreturnavotinginstructionformwithoutgivingspecificvotinginstructionsononeormoreoftheproposals.

Q: How will voting on any other business be conducted?A: AstoanyotherbusinessthatmayproperlycomebeforetheAnnualMeeting,allproperlysubmittedproxies

willbevotedbytheproxyholdersnamedintheproxycard,intheirdiscretion,onsuchmatters.WedonotpresentlyknowofanyotherbusinessthatmaycomebeforetheAnnualMeeting.

Q: What does it mean if I receive more than one Notice, proxy card or voting instruction form?A: Itmeansyoursharesareregistereddifferentlyorareinmorethanoneaccount.Pleaseprovidevoting

instructionsforeachNotice,proxycardorvotinginstructionformyoureceive.

Q: Can I revoke my proxy or change my vote?A: Yes.Ifyouholdyoursharesdirectlyasthestockholderofrecord,youmayrevokeyourproxyorchange

yourvotinginstructionsatanytimepriortothevoteattheAnnualMeetingby:

• providingwrittennoticeofrevocationtotheSecretaryoftheCompanyatTwoWestbrookCorporateCenter,Suite500,Westchester,Illinois60154;

• deliveringavalid,later-datedproxyoralater-datedvoteontheInternetorbytelephone;or

• attendingtheAnnualMeetingonlineandvotingduringthemeeting,whichwillautomaticallycancelanyproxypreviouslygranted.

PleasenotethatyourattendanceattheAnnualMeetingalonewillnotcauseyourpreviouslygrantedproxytoberevokedunlessyouvoteonlineduringtheAnnualMeeting.AnychangetoyourproxythatisprovidedbytelephoneortheInternetmustbesubmittedby11:59p.m.,EasternDaylightTime,onJune16,2020.

Ifyoursharesareheldin“streetname,”youmustcontactyourbroker,bankorothernomineetofindouthowtochangeorrevokeyourvotinginstructions.

Q: Who will bear the cost of soliciting proxies for the Annual Meeting?A: TheCompanypaysthecostofsolicitingyourproxyandreimbursesbrokersandothersforforwardingto

youtheproxymaterialsasbeneficialownersofourcommonstock.TheCompany’sdirectors,officersandemployeesalsomaysolicitproxiesbymail,telephoneandpersonalcontact.Theywillnotreceiveanyadditionalcompensationfortheseactivities.

Q: Where can I find the voting results of the Annual Meeting?A: WewillannouncepreliminaryvotingresultsattheAnnualMeetingandpublishpreliminary,orfinalresultsif

available,inaCurrentReportonForm8-KwithinfourbusinessdaysoftheAnnualMeeting.

Q: How can I attend the Annual Meeting?A: TheAnnualMeetingwillbeacompletelyvirtualmeetingofstockholders,whichwillbeconductedthrougha

liveaudiowebcast.Therewillbenophysicalmeetinglocation.YouareentitledtoparticipateintheAnnualMeetingonlyifyouwereaCompanystockholderasofthecloseofbusinessonApril20,2020orifyouholdavalidproxyfortheAnnualMeeting.

66

TABLE OF CONTENTS

YouwillbeabletoattendtheAnnualMeetingonlineandsubmityourquestionsduringthemeetingbyvisitingwww.virtualshareholdermeeting.com/IAA2020.YoualsowillbeabletovoteyoursharesonlineduringtheAnnualMeeting.AftertheAnnualMeeting,wewillspendupto15minutesansweringstockholderquestionsthatcomplywiththemeetingrulesofconduct;therulesofconductwillbepostedonthevirtualmeetingwebportal.Totheextenttimedoesn’tallowustoansweralloftheappropriatelysubmittedquestions,wewillanswertheminwritingonourinvestorrelationswebsite,athttps://investors.iaai.com/,soonafterthemeeting.Ifwereceivesubstantiallysimilarquestions,wewillgroupsuchquestionstogetherandprovideasingleresponsetoavoidrepetition.

ToparticipateintheAnnualMeeting,youwillneedthe16-digitcontrolnumberincludedonyourNotice,orontheproxycardorvotinginstructionformthataccompaniedyourproxymaterials.Instructionsonhowtoattendandparticipateinouronlinemeeting,includinghowtodemonstrateproofofstockownership,arepostedonthemeetingwebsite.

TheAnnualMeetingwillbeginpromptlyat9:00a.m.,EasternDaylightTime.Weencourageyoutoaccessthemeetingpriortothestarttime.Onlineaccesstothemeetingwillopenat8:45a.m.,EasternDaylightTime,andyoushouldallowampletimetologintothemeetingandtestyourdevice’saudiocapabilitiespriortothestartofthemeeting.

Q: Why is the Annual Meeting virtual?A: Weareexcitedtohostavirtualannualmeetingtoprovideeaseofaccess,real-timecommunicationand

costsavingsforourstockholdersandtheCompany.Hostingavirtualmeetingfacilitatesstockholderattendanceandparticipationbyenablingstockholderstoparticipatefromaroundtheworld.ItalsoprovidesimprovedcommunicationandcostsavingsforourstockholdersandtheCompany.ThisbalancewillallowtheAnnualMeetingtoremainfocusedonmattersdirectlyrelevanttotheinterestsofstockholdersinawaythatrecognizesthevaluetostockholdersofanefficientuseofCompanyresources.Inaddition,duetotheescalatingnatureofthecoronavirus(COVID-19)pandemicandtheprotocolsthatfederal,stateandlocalgovernmentsarecurrentlyimposing,andoutofanabundanceofcautionandanappreciationforourstockholders,webelieveholdingavirtualmeetingisinthebestinterestsofourstockholders.

Inaddition,theBoardintendsthatthevirtualmeetingformatprovidestockholderswithaleveloftransparencyascloseaspossibletothetraditionalin-personmeetingformatandwilltakethefollowingstepstoensuresuchanexperience:

• providingstockholderswiththeabilitytosubmitappropriatequestionsbeginningat8:45a.m.EasternTimeonthedateofthemeeting;

• providingstockholderswiththeabilitytosubmitappropriatequestionsviathemeetingwebsite,limitingquestionstooneperstockholderunlesstimeotherwisepermits;

• answeringasmanyquestionssubmittedinaccordancewiththemeetingrulesofconductaspossibleinthetimeallottedforthemeetingwithoutdiscrimination;

• publishingappropriatequestionssubmittedinaccordancewiththemeetingrulesofconductwithanswersfollowingthemeeting,includingthosenotaddresseddirectlyduringthemeeting;and

• offeringseparateengagementopportunitieswithstockholdersonappropriatemattersofgovernanceorotherrelevanttopicsasoutlinedunderthe“BoardofDirectorsStructureandCorporateGovernance-StockholderCommunicationsWiththeBoard”sectioninthisProxyStatement.

Q: What if I have technical difficulties or trouble accessing the meeting?A: Wewillhavetechniciansreadytoassistyouwithanytechnicaldifficultiesyoumayhaveaccessingthe

virtualmeetingorsubmittingquestions.Ifyouencounteranydifficultiesaccessingthevirtualmeetingduringthecheck-inormeetingtime,pleasecallthetechnicalsupportnumberthatwillbepostedonthevirtualmeetingloginpage.

67

TABLE OF CONTENTS

GENERAL INFORMATION IAAissubjecttotheinformationalrequirementsoftheExchangeActand,inaccordancetherewith,filesreports,proxystatementsandotherinformationwiththeSEC.Reports,proxystatementsandotherinformationelectronicallyfiledbytheCompanywiththeSECareavailablewithoutchargeontheSEC’swebsiteathttp://www.sec.gov.Thesematerialsarealsoavailablefreeofchargeonourcorporatewebsiteathttps://investors.iaai.com/assoonasreasonablypracticableaftertheyarefiledorfurnishedwiththeSEC.

The Company will provide without charge to each person solicited hereby, upon the written or oralrequest of any such persons, copies of the Company’s 2019 Annual Report, including financialstatements and financial statement schedules. Requests for such copies should be addressed to TwoWestbrook Corporate Center, Suite 500, Westchester, Illinois 60154, Attn: Secretary or by telephone at(708) 492-7000.YoumayalsoaccessadditionalinformationabouttheCompanyatourInternetaddress,http://www.iaai.com.ReferencestoourwebsitethroughoutthisProxyStatementareprovidedforconvenienceonlyandthecontentonourwebsitedoesnotconstituteapartofthisProxyStatement.

OTHER MATTERS WedonotknowofanyothermatterthatwillbebroughtbeforetheAnnualMeeting.However,ifanyothermatterproperlycomesbeforetheAnnualMeetingoranyadjournment(s)orpostponement(s)thereof,whichmayproperlybeactedupon,theproxiessolicitedherebywillbevotedatthediscretionofthenamedproxyholders.

AspermittedbytheExchangeAct,onlyonecopyofourproxymaterialsisbeingdeliveredtostockholdersofrecordresidingatthesameaddressandwhodidnotreceiveaNoticeofInternetAvailabilityorotherwisereceivetheirproxymaterialselectronically,unlesssuchstockholdershavenotifiedusoftheirdesiretoreceivemultiplecopiesofourproxymaterials.Thisisknownashouseholding.Wewillpromptlydeliver,uponoralorwrittenrequest,aseparatecopyoftheproxymaterialstoanystockholderresidingatanaddresstowhichonlyonecopywasmailed.StockholderswhocurrentlyreceivemultiplecopiesofproxymaterialsattheiraddressandwouldliketorequesthouseholdingoftheircommunicationsshouldcontactBroadridgeFinancialSolutions,Inc.RequestsforadditionalcopiesorrequestsforhouseholdingforthisyearorfutureyearsshouldbedirectedinwritingtoBroadridgeFinancialSolutions,Inc.at51MercedesWay,Edgewood,NewYork11717orbytelephoneat1-800-579-1639.

YoumayvoteontheInternet,orifyouarereceivingapapercopyofthisProxyStatement,bytelephone(ifavailable),orbycompletingandmailingaproxycardorvotinginstructionforminthepreaddressed,postagepaidenvelopeprovidedtoyou.VotingovertheInternet,bytelephoneorbywrittenproxywillensureyoursharesarerepresentedattheAnnualMeeting.

WE URGE YOU TO SUBMIT YOUR PROXY OR VOTING INSTRUCTIONS ASSOON AS POSSIBLE WHETHER OR NOT YOU EXPECT TO ATTEND THEANNUAL MEETING AND VOTE IN PERSON. IF YOU ATTEND THE ANNUALMEETING AND VOTE IN PERSON, YOUR PROXY WILL NOT BE USED.April23,2020

68

TABLE OF CONTENTS

Appendix A — Reconciliation of Adjusted EBITDA Adjustedearningsbeforeinterest,incometaxes,depreciationandamortization,orAdjustedEBITDA,isanon-GAAPfinancialmeasurecalculatedasnetincomebeforeincometaxes,interestexpense,anddepreciationandamortization,orEBITDA,andfurtheradjustedforitemsthatmanagementbelievesarenotrepresentativeofongoingoperationsincluding,butnotlimitedto,(a)one-timetransactionandothercostsrelatedtotheSpin-OfffromKARinthesecondquarterof2019,(b)severance,restructuringandotherretentionexpenses,(c)thenetlossorgainsonthesaleofassetsorexpensesassociatedwithcertainM&A,financingandothertransactions,(d)otherexpensesthatwedonotbelieveareindicativeofourongoingoperations,aswellas(e)gainsandlossesrelatedtoforeigncurrencyexchangerates.Webelievethismeasureprovidesusefulinformationregardingouroperationalperformancebecauseitenhancesaninvestor’soverallunderstandingofourcorefinancialperformanceandhelpsinvestorscompareourperformancetopriorandfutureperiods.WehavemadechangestoourcalculationofAdjustedEBITDAcomparedtowhatwaspreviouslyreportedforIAAbyKARAuctionServices,includedintheRegistrationStatementonForm10filedwiththeSECinconnectionwithourSpin-Off.ForAdjustedEBITDA,wenolongeradjustforstockcompensationexpenseanddeferredrent,butcontinuetoadjustfortheotheritemsdefinedaboveandnotedinourreconciliation.Wehaveconformedallpriorperiodamountstothisnewpresentation.

AdjustedEBITDAshouldbeconsideredinadditionto,andnotasareplacementfororsuperiorto,netincome,thecomparableGAAPmeasure,andmaynotbecomparabletosimilarlytitledmeasuresreportedbyothercompanies.ManagementusesthisfinancialmeasureandkeyperformanceindicatorstoassesstheCompany’sfinancialoperatingperformance,andwebelievethatthismeasureprovidesusefulinformationtoinvestorsbyofferingadditionalwaysofviewingtheCompany’sresults,asnotedabove.

Reconciliation of Adjusted EBITDA (Amounts in Millions)

Fiscal Year Ended

December 29,

2019December 30,

2018December 31,

2017

Netincome $193.2 $183.7 $161.4

Add:incometaxes 69.0 62.5 35.6

Add:interestexpense,net 55.7 38.7 38.6

Add:depreciation&amortization 88.4 97.4 93.1

EBITDA $406.3 $382.3 $328.7

Addbacknon-GAAPadjustments:

Spinoffcosts 3.5 2.0 —

Retention\severance 1.7 0.1 0.3

Loss(gain)onsaleofassets (0.1) (0.7) (0.5)

Acquisitioncosts 0.2 — —

One-timefloodinsurancereimbursement — (0.7) —

Non-operatingforeignexchangeloss(gain) 0.1 0.1 —

Adjusted EBITDA $411.7 $383.0 $328.4

Note:Amountswillnotalwaysrecalculateduetorounding.

69

TABLE OF CONTENTS

TABLE OF CONTENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001745041/c8ab0339-35... · 2020. 4. 23. ·...

Documents

Transcript of TABLE OF CONTENTSd18rn0p25nwr6d.cloudfront.net/CIK-0001745041/c8ab0339-35... · 2020. 4. 23. ·...