Summary
Eaton Corp plc (ETN) filed an 8-K on December 3, 2020, announcing a significant leadership transition in its finance department. Thomas B. Okray is appointed as the new Executive Vice President and Chief Financial Officer, succeeding Richard H. Fearon who will retire on March 31, 2021. Mr. Okray, with extensive financial leadership experience at companies like W.W. Grainger, Advance Auto Parts, and Amazon, will join Eaton in January 2021 and officially assume the CFO role in April 2021, ensuring a smooth handover. This filing also details Mr. Okray's compensation package, which includes a substantial base salary, performance-based cash incentives, and long-term equity awards (Performance Share Units, Stock Options, and Restricted Share Units) valued at over $2 million. Additionally, provisions are made for replacing unvested awards from his previous employer, Grainger, and a comprehensive severance package under a Change of Control agreement. This transition indicates a focus on experienced financial leadership to guide Eaton's future financial strategy.
Key Highlights
- 1Appointment of Thomas B. Okray as Executive Vice President and Chief Financial Officer, effective April 1, 2021.
- 2Retirement of current CFO Richard H. Fearon on March 31, 2021, ensuring a planned succession.
- 3Mr. Okray brings significant financial leadership experience from W.W. Grainger, Advance Auto Parts, Amazon, and General Motors.
- 4Mr. Okray's compensation package includes an $800,000 base salary and participation in incentive programs.
- 5Significant long-term incentives for Mr. Okray include Performance Share Units ($1.1M value), Stock Options ($550K value), and Restricted Share Units ($550K value).
- 6Eaton is compensating Mr. Okray for unvested awards from his previous employer, W.W. Grainger, including cash and equity awards.
- 7Standard executive agreements, including an Indemnification Agreement and a Change of Control Agreement, will be in place for Mr. Okray.