Kevin Gokey
CHURCH & DWIGHT CO INC /DE/About Kevin Gokey
Kevin Gokey is Executive Vice President, Chief Information Officer (EVP, CIO) at Church & Dwight, appointed in October 2024 after serving as Senior Vice President, Global CIO from December 2014 to September 2024; he has been employed by the company since February 1992 and is 63 years old . His background includes senior IT leadership at Thomas & Betts and significant information technology roles at Revlon, National Westminster Bank, Payne Webber, and Siemens Medical Systems . Company performance during 2024 featured $6.1B in net sales, 45.7% gross margin, $3.44 adjusted diluted EPS, $1.16B cash from operations, and 12.0% TSR, with TSR of 18.7% in 2023—key metrics aligning pay programs to performance outcomes for executives, including EVPs .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Church & Dwight | EVP, Chief Information Officer | Oct 2024–present | Enterprise CIO leadership |
| Church & Dwight | SVP, Global CIO | Dec 2014–Sep 2024 | Global IT leadership |
| Church & Dwight | Director, Information Technology | Oct 2008–Dec 2014 | IT management |
| Church & Dwight | Various roles of increasing responsibility | Feb 1992–Oct 2008 | Progressive IT responsibility |
| Thomas & Betts | Senior IT management position | Not disclosed | Senior IT management |
| Revlon; National Westminster Bank; Payne Webber; Siemens Medical Systems | Information technology roles | Not disclosed | Significant IT experience |
Fixed Compensation
- Executive stock ownership guidelines require EVPs to hold Company stock equal to 2.5x base salary; compliance is measured excluding options and requires executives below guidelines to retain 50% of net after-tax shares from equity vestings until compliant .
- Perquisites are limited; there are robust clawback policies aligned to NYSE/Dodd-Frank, and no excise tax gross-ups for change-in-control payments .
- The CEO Say-on-Pay received 88.6% support at the 2024 meeting, indicating broad investor endorsement of the program design .
Performance Compensation
Church & Dwight’s Annual Incentive Plan (AIP) uses five equally weighted metrics (20% each): Net Sales, Relative Gross Margin, Adjusted Diluted EPS, Cash from Operations, and Strategic Initiatives . In 2024, the plan rating was set at 1.2, and actual performance delivered a 1.39 corporate rating; NEO payouts were 116% of award opportunity at the 1.2 plan rating .
| Metric (20% weight each) | Threshold | Target (Plan rating 1.2) | Maximum | Actual (as adjusted) | Rating |
|---|---|---|---|---|---|
| Net Sales ($mm) | 5,858 | 6,102 | 6,346 | 6,122 | 1.27 |
| Relative Gross Margin (percentile) | < 25th | 55th | 80th | 44th | 0.82 |
| Adjusted Diluted EPS ($) | 3.28 | 3.42 | 3.56 | 3.47 | 1.51 |
| Cash From Operations ($mm) | 927 | 1,030 | 1,133 | 1,159 | 2.00 |
| Strategic Initiatives (qualitative) | 0.75–1.50 scale | 0.75–1.50 scale | 0.75–1.50 scale | Qualitative | 1.34 |
Long-term incentives for executives shifted in 2023–2024 to a mix of 75% stock options, 15% PSUs (relative TSR over three years), and 10% RSUs (three-year ratable vest) to balance market practice, risk management, and alignment with stockholders . Stock options have 10-year terms, grant-date fair value exercise price, and vest in full on the third anniversary (service-based) . All options granted on or after July 30, 2019 and all RSUs/PSUs require a double trigger for accelerated vesting upon change in control (qualifying termination within 24 months) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership (non-derivative) | 3,831.83 shares indirect via Savings and Profit Sharing; 553 RSUs direct that vest one year after grant |
| Derivative holdings (options) | 5,740 @ $84.54 (exercisable 06/14/2024, exp 06/14/2031) ; 8,110 @ $84.85 (exercisable 06/13/2025, exp 06/13/2032) ; 5,430 @ $83.13 (exercisable 03/01/2026, exp 03/01/2033) ; 4,710 @ $100.28 (exercisable 03/01/2027, exp 03/01/2034) |
| Ownership as % of shares outstanding | ≈0.0018% based on 4,384.83 total non-derivative shares and 246,109,929 shares outstanding at 03/05/2025 (computed; sources: ) |
| In-the-money option value (illustrative) | Using $104.71 closing price at 12/31/2024: ITM ≈ $20.17×5,740; $19.86×8,110; $21.58×5,430; $4.43×4,710 (computed; sources: ) |
| Pledging / hedging | Prohibited by policy; short sales, derivatives, swaps, margin, standing orders, hedging/monetization banned |
| Stock ownership guidelines | EVP multiple 2.5x base salary; options excluded from guideline calculation; if below guidelines, must hold 50% of net after-tax shares from vestings; executives on track to meet within five years |
Vesting Schedules (specific awards)
| Award Type | Number of Shares | Exercise/Grant Price | Date Exercisable/Vests | Expiration/Final Vest |
|---|---|---|---|---|
| Stock Option | 5,740 | $84.54 | 06/14/2024 | 06/14/2031 |
| Stock Option | 8,110 | $84.85 | 06/13/2025 | 06/13/2032 |
| Stock Option | 5,430 | $83.13 | 03/01/2026 | 03/01/2033 |
| Stock Option | 4,710 | $100.28 | 03/01/2027 | 03/01/2034 |
| RSUs | 553 | N/A | Vest one year after grant (service-based) | N/A |
Employment Terms
- Change-in-Control (double trigger): Upon termination without cause or for good reason within two years post-CIC, EVPs receive a lump sum of 2x base salary plus target bonus, plus a prorated target bonus for the year through termination; equity awards granted on/after July 30, 2019 accelerate at target on qualifying termination; payments are subject to a six-month delay .
- Outside CIC: Upon termination without cause or for good reason, EVPs receive 1x base salary paid over ~12 months and a prorated actual AIP payout; continuation of medical/dental/life coverage for 12 months; outplacement and unused vacation paid; agreements include non-compete, non-solicit, and non-disparagement provisions .
- Excise tax treatment: No gross-ups; payments reduced if doing so yields higher net after-tax than paying Section 4999 excise tax .
- Start date and tenure: Employed at Church & Dwight since February 1992; EVP, CIO since October 2024 .
Compensation Structure Analysis
- Shift from all-options to mixed LTI: Starting 2023, the Company added RSUs and PSUs (relative TSR) alongside options (75% options / 15% PSUs / 10% RSUs), improving retention, market alignment, and diversification of incentives beyond pure price appreciation .
- Balanced AIP: Five diverse metrics avoid over-emphasis on any single driver; 2024 plan design delivered a 1.39 performance rating based on results, consistent with pay-for-performance .
- Governance safeguards: Robust clawbacks, prohibition on hedging/pledging, no option repricing without stockholder approval, and no excise tax gross-ups mitigate shareholder risk .
Risk Indicators & Red Flags
- Hedging/pledging banned; options excluded from ownership guideline calculation—mitigates misalignment risk .
- Double-trigger CIC vesting and no excise tax gross-ups—shareholder-friendly constructs limiting windfalls and single-trigger acceleration risk .
- Say-on-Pay support was strong at ~88.6% in 2024, reducing governance pressure on compensation practices .
Investment Implications
- Alignment appears strong: EVP ownership requirements, hold requirements, and the ban on pledging/hedging reduce selling pressure and align incentives to long-term TSR .
- Upcoming option vesting dates (2025–2027) and RSU vesting could create periodic liquidity windows; however, mandatory holding requirements if below guidelines mitigate near-term selling pressure .
- Program design balances short-term execution and long-term value creation through diversified metrics and a three-year relative TSR PSU, supporting retention and consistent performance delivery .