Timothy Eckersley
AllegionAbout Timothy Eckersley
Timothy P. Eckersley, age 63, serves as President, International, and Senior Vice President at Allegion plc, a role he has held since June 2023; prior roles include Senior Vice President, Allegion International (2021–June 2023) and Senior Vice President, Americas (2013–2020) . Allegion’s 2024 performance underpinning incentive designs delivered net revenues of $3,772.2 million (+3.3% YoY), operating income of $780.7 million (+10.2%), available cash flow of $582.9 million (+12.9%), EPS of $6.82 (+11.4%), and TSR of 10.06% for the 2022–2024 period (30th percentile vs S&P 400 Capital Goods), driving AIP payouts of ~92% of target (corporate) and PSU payouts of 117% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Allegion plc | President, International; Senior Vice President | Jun 2023–present | Leads Allegion’s international businesses; executive NEO responsible for regional financial and operational performance . |
| Allegion plc | Senior Vice President, Allegion International | 2021–Jun 2023 | Led international portfolio during expansion and operational execution . |
| Allegion plc | Senior Vice President, Americas | 2013–2020 | Directed Americas segment; core P&L leadership and growth execution . |
| Allegion plc | Oversight of Global Software Solutions (expanded responsibilities) | Initiated 2023 | Additional performance-based equity tied to building global commercial software solutions and platform objectives; 2025 component paid at 91% of target . |
Fixed Compensation
| Metric | 2024 | 2025 |
|---|---|---|
| Base Salary ($) | $570,000 | $600,000 |
| Target Bonus (% of Base) | 75% | 75% |
| Long-term Incentive Target ($) | $900,000 | $925,000 |
Performance Compensation
Annual Incentive Plan (AIP) – 2024
| Component | Target | Actual | Payout |
|---|---|---|---|
| AIP Target ($) | $427,500 | — | — |
| Financial Performance Score (International) | — | 90.86% | — |
| Individual Performance Score | — | 100% | — |
| AIP Award ($) | — | $390,735 | 91.40% of target |
International AIP financial metrics and outcomes:
| Metric (International) | Threshold ($mm) | Target ($mm) | Maximum ($mm) | Actual ($mm) | Weighted Financial Achievement |
|---|---|---|---|---|---|
| Adjusted Revenue | 737 | 776 | 815 | 750 | 22.08% |
| Adjusted Operating Income | 97 | 107 | 118 | 97 | 17.96% |
| Operating Cash Flow | 89 | 105 | 120 | 113 | 50.82% |
| Financial Performance Score (sum) | — | — | — | — | 90.86% |
Corporate AIP financial metrics (context for program design):
| Metric (Corporate) | Threshold ($mm) | Target ($mm) | Maximum ($mm) | Actual ($mm) | Weighted Financial Achievement |
|---|---|---|---|---|---|
| Adjusted Revenue | 3,651 | 3,794 | 3,984 | 3,734 | 26.32% |
| Adjusted Operating Income | 793 | 857 | 943 | 842 | 29.45% |
| Adjusted Available Cash Flow | 516 | 570 | 656 | 578 | 36.29% |
| Financial Performance Score (sum) | — | — | — | — | 92.06% |
Long-Term Incentive (LTI)
Structure and vesting:
- PSUs: 50% of LTI; 3-year performance period; 50% adjusted EPS and 50% relative TSR versus S&P 400/500 Capital Goods; payout 0–200%; TSR portion capped at target if TSR negative .
- Stock Options: 25%; 10-year term; vest ratably over 3 years .
- RSUs: 25%; vest ratably over 3 years; dividend equivalents only if vested .
2024 grants (Eckersley):
| Award Type | Grant Date | Grant Date Fair Value ($) | Units (#) | Option Exercise Price ($) | Expiration |
|---|---|---|---|---|---|
| PSUs (2024–2026) | 2/22/2024 | 537,978 | 3,454 | — | — |
| Stock Options | 2/22/2024 | 225,019 | 5,499 | 130.290 | 2/22/2034 |
| RSUs | 2/22/2024 | 225,011 | 1,727 | — | — |
PSU payouts for the 2022–2024 performance cycle:
| Metric | Threshold | Target | Maximum | Actual | Component Payout | Total PSU Payout |
|---|---|---|---|---|---|---|
| Adjusted EPS (50%) | $6.02 | $6.74 | $7.72 | $7.47 | 174% | 117% |
| Relative TSR (50%) | 25th pct | Median | ≥75th pct | 30th pct (10.1% TSR) | 60% | 117% |
| PSUs Earned (Eckersley) | — | 3,577 target | — | — | — | 4,186 shares |
Special performance-based equity for Global Software Solutions responsibilities (granted Apr 2023):
| Component | Target Shares | Payout Timing | 2025 Achievement | 2025 Payout |
|---|---|---|---|---|
| PSU-like award | 14,701 | 1/2 in Feb 2024; 1/3 in Feb 2025; 1/6 in Feb 2026 | Composite score 91% | 91% of 2025 component |
Equity Ownership & Alignment
Beneficial ownership (as of March 14, 2025):
| Holder | Ordinary Shares | Notional Shares | Options Exercisable within 60 Days | Ownership % |
|---|---|---|---|---|
| Timothy P. Eckersley | 35,716 | 1,518 | 25,016 | <1% |
2024 option exercises and stock vesting (supply considerations):
| Category | Shares | Value Realized ($) |
|---|---|---|
| Options Exercised (2024) | 19,754 | 1,097,537 |
| Stock Awards Vested (2024) | 19,662 | 2,551,691 |
Ownership and alignment policies:
- Anti-hedging/anti-pledging: Executives prohibited from hedging and pledging; no pledged securities outstanding among directors or executive officers .
- Stock ownership guidelines: Senior Vice Presidents required to hold 2x base salary; compliance or on-track status confirmed as of April 2024; EDCP shares and unvested RSUs count, options and unvested PSUs excluded .
Employment Terms
Change-in-Control (CIC) Plan terms:
- Severance multiple: 1.5x base salary plus 1.5x target annual incentive for executive officers; CEO is 3.0x .
- Health benefits: Continued for years equal to the severance multiple; outplacement up to $25,000 .
- Equity: Options/RSUs vest upon CIC unless substantially equivalent replacement awards provided; PSUs vest pro-rata based on target and service through the performance period .
- Tax gross-ups: None; “Best of Net” approach to optimize after-tax benefits .
Estimated payments for Eckersley (hypothetical separation on Dec 31, 2024):
| Scenario | Severance ($) | Earned but Unpaid AIP ($) | PSU Award Payout ($) | Value of Unvested Equity ($) | Health Benefits ($) | Outplacement ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| Retirement | — | 390,735 | 1,941,035 | 577,721 | — | — | 2,909,491 |
| Involuntary without Cause | — | 390,735 | 1,941,035 | 577,721 | — | — | 2,909,491 |
| Change in Control (qualifying termination) | 1,995,000 | 390,735 | 1,640,122 | 577,721 | 39,530 | 25,000 | 4,668,108 |
| Disability | — | 390,735 | 1,640,122 | 577,721 | — | — | 2,608,578 |
| Death | — | 390,735 | 1,640,122 | 577,721 | — | — | 2,608,578 |
Clawbacks and governance protections:
- SEC/NYSE-compliant clawback policy (2023) requiring reimbursement/forfeiture of excess incentive-based compensation upon restatement .
- Enhanced clawback (2024) allowing recoupment of time- and performance-based awards for cause terminations or fraud-related restatements .
Multi-Year Compensation Summary (NEO SCT)
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Comp ($) | Change in Pension Value ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 2022 | 522,615 | 647,200 | 206,277 | 202,694 | — | 83,112 | 1,661,898 |
| 2023 | 545,900 | 2,168,528 | 207,514 | 633,941 | — | 75,501 | 3,631,384 |
| 2024 | 565,300 | 762,989 | 225,019 | 390,735 | 565,734 | 110,022 | 2,619,799 |
Pension benefits (present value of accumulated benefit at 12/31/2024):
| Plan | Years of Service | Present Value ($) |
|---|---|---|
| Qualified Pension Plan | 15.17 | 236,911 |
| Supplemental Pension Plan | 15.17 | 521,964 |
| KMP (legacy Ingersoll Rand) | 17.17 | 2,941,574 |
Compensation Structure Analysis
- Pay mix and at-risk pay: Significant proportion of target total direct compensation in performance-contingent incentives (AIP/PSUs/options/RSUs), consistent with pay-for-performance design .
- Metric shifts: 2024 AIP replaced adjusted EBITDA with adjusted operating income to align corporate and regional metrics; International financial score 90.86% reflects strong cash generation offset by OI shortfall versus target .
- PSU calibration: 2022–2024 cycle paid 117% of target driven by strong adjusted EPS (174% component) despite below-median TSR (60% component), a balanced but potentially generous outcome amid 30th percentile relative TSR .
- Governance: No employment agreements with fixed terms; no option repricing; no tax gross-ups under CIC; robust anti-hedging/anti-pledging and clawbacks .
Investment Implications
- Alignment and retention: Eckersley’s equity-heavy mix, ownership guidelines (2x salary), and prohibition on pledging/hedging support alignment with long-term shareholders and reduce misalignment risk .
- Performance-sensitive payouts: International AIP outcomes near target and PSU structure with dual EPS/TSR metrics tie pay to both absolute and relative performance; watch TSR underperformance vs peers as a moderating factor in future cycles .
- Event risk terms: Double-trigger CIC protection (1.5x multiple, immediate vesting unless replaced, pro-rata PSUs, no gross-ups) provide continuity but create potential payout leverage in M&A scenarios; total CIC package estimated at ~$4.67M as of 12/31/2024 .
- Trading signals: 2024 option exercises and sizable vesting events indicate periodic supply overhang windows; monitor 10b5-1 activity and vest timing to anticipate potential insider-related flows around anniversaries of 2/22 grants .
Shareholder say-on-pay approval of ~85% in 2024 indicates general investor support for the program, with ongoing engagement and enhanced clawbacks suggesting responsiveness to governance feedback .