Tracy Kemp

About Tracy Kemp

Tracy L. Kemp is Senior Vice President and Chief Information and Digital Officer of Allegion plc, serving in the role since December 2020; she previously served as SVP & Chief Customer and Digital Officer (2019–2020) and SVP & Chief Information Officer (2015–2019). She is 57 years old as of April 1, 2025 . During 2024, Allegion delivered net revenues of $3,772.2M (+3.3% YoY), operating income of $780.7M (+10.2% YoY), adjusted EPS of $7.53 (+8.2% YoY), and a 10.06% TSR for the 2022–2024 PSU period (30th percentile vs S&P 400 Capital Goods), which informed incentive outcomes across executives .

Past Roles

External Roles

• No external directorships or external roles are disclosed for Kemp in the latest proxy or referenced filings .

Fixed Compensation

• Kemp is not a Named Executive Officer (NEO) in 2024; therefore, her specific base salary, target bonus, and cash compensation are not individually disclosed in the Summary Compensation Table. Allegion sets base salaries via annual market and performance reviews and does not maintain fixed-term executive employment agreements as a matter of practice (a “don’t have” compensation practice) .
• Stock ownership guidelines require Senior Vice Presidents to hold shares equal to 2x base salary (compliance required within five years; RSUs count, options/PSUs do not), and the company disclosed directors and executives are in compliance or on track; NEOs were also in compliance/on track at the last evaluation .
• Anti-hedging and anti-pledging: Executives are prohibited from hedging and pledging Allegion stock and from holding Allegion securities in margin accounts; the company disclosed no pledges by directors or executive officers .
• Clawback: Allegion adopted a NYSE/SEC-compliant clawback covering excess incentive-based pay tied to restatements and an enhanced policy enabling recoupment, including time-based awards, for cause terminations and fraud/intentional misconduct .

Performance Compensation

Incentive architecture applicable to executive officers (including corporate-function executives like Kemp) consists of an Annual Incentive Plan (AIP) and a long-term incentive (LTI) mix of PSUs (50%), stock options (25%), and RSUs (25%) with three-year vesting for options/RSUs and a three-year performance period for PSUs .

• 2024 AIP structure for corporate executives: Financial score based on adjusted revenue, adjusted operating income (OI), and adjusted available cash flow (ACF); individual performance multiplier (0–150%) subject to a People, Environment and Safety Scorecard downward-only modifier (up to -3%), with an overall 200% cap .

2024 Corporate AIP targets and actuals:

• Company stated corporate-function NEOs achieved 92.06% of target under AIP, reflecting shortfall to stretch despite record results .

PSU design and payout:

Vesting schedules (all executives):

• Options and RSUs: vest ratably over three years; options expire 10 years from grant .
• PSUs: vest at the end of a three-year period based on certified results; dividend equivalents accrue and are paid only upon vesting .

Equity Ownership & Alignment

• Insider transactions (Form 4): On July 25, 2025, Kemp exercised 2,349 options (granted 2/22/2018; $86.93 strike) and sold 3,849 shares at ~$164.89–$164.98, leaving direct ownership of 8,773 shares post-transaction; no remaining derivative securities were reported in connection with the exercised grant . Summaries consistent with the filing were reported by Investing.com and StockTitan .

Equity position from latest disclosed Form 4:

Alignment safeguards and policies:

• Ownership guideline: SVP = 2x salary; RSUs count, options/PSUs excluded; compliance on track across executives .
• Anti-pledging/hedging: Prohibited; no pledges by directors/executive officers .
• Clawbacks: Restatement-based and enhanced discretionary recoupment policies in place .

Employment Terms

• Change-in-control (CIC) economics: Executive officers (non-CEO) receive a cash severance equal to 2.0x (salary + target annual incentive) upon a qualifying termination within two years of a CIC, plus pro-rated target bonus for year of termination, health benefits continuation for 24 months, and up to $25,000 outplacement; CEO multiple is 3.0x .
• Equity on termination: Upon death/disability, options/RSUs accelerate and options remain exercisable (3 years); for retirement, options/RSUs continue vesting on schedule and options exercisable up to 5 years; PSUs vest pro rata at target or based on performance depending on grant year; treatments for group termination/job elimination as specified (e.g., limited vesting or forfeiture) .
• Non-compete practice: Officer agreements commonly include non-compete and proprietary information covenants (illustrative example in CFO appointment letter) .
• Severance outside CIC: Company does not maintain a formal severance policy specific to NEOs/executives; arrangements may be set in recruiting/individual cases .

Performance Compensation — 2024 Plan Design Details (for benchmarking Kemp’s incentives)

Governance, Pay Practices, and Shareholder Feedback (context for incentives)

• “Do/Don’t have” practices include: robust ownership, enhanced clawbacks, no single-trigger CIC equity vesting, no hedging/pledging, no tax gross-ups under CIC .
• 2024 Say-on-Pay approval: ~85% “for,” with investor outreach indicating general support for incentive design; no material design changes made for 2024 .
• Compensation benchmarking and peer groups are disclosed; AIP/LTI metrics tied to strategy pillars and AOP .

Investment Implications

• Incentive alignment: Kemp’s pay is governed by corporate frameworks emphasizing profitable growth and cash flow in the AIP and sustained value creation via EPS and relative TSR in PSUs; 2024 corporate AIP funded at 92.06% and 2022–2024 PSUs paid at 117%, indicating moderate-to-strong alignment with improving fundamentals and average relative TSR .
• Selling pressure and retention: The July 2025 Form 4 shows a routine option exercise and sale at near highs, leaving 8,773 shares and no derivatives from the 2018 grant; with anti-pledging rules and ongoing ownership requirements (2x salary), this suggests manageable selling pressure and continued equity alignment rather than a red flag .
• Downside protection and risk: Strong clawbacks, no tax gross-ups, and double-trigger CIC severance at 2x (non-CEO) with defined equity treatments temper risk and promote balanced decision-making, while anti-hedging/pledging policies maintain alignment with long-term shareholders .