Lee McChesney
CHURCH & DWIGHT CO INC /DE/About Lee McChesney
Lee McChesney, 53, became Executive Vice President and Chief Financial Officer of Church & Dwight (CHD) effective March 24, 2025. He holds a BS in finance from the University of Connecticut and an MBA from the University of Massachusetts, and previously served as CFO of MSA Safety and held senior finance and operating roles at Stanley Black & Decker/The Stanley Works and United Technologies . CHD entered 2025 with solid operating momentum: FY2024 net sales of $6.1B, gross margin 45.7%, adjusted diluted EPS reported in highlights at $3.44 and used in AIP calculations at $3.47, cash from operations $1.16B, and 12.0% TSR in 2024 following 18.7% in 2023 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| MSA Safety Inc. | SVP & CFO | Aug 2022–Mar 2025 | Led global finance (treasury, FP&A, IR, operations/commercial finance, accounting/audit) and business development . |
| Stanley Black & Decker | VP Corporate Finance; CFO, Global Tools & Storage; President, Hand Tools, Accessories & Storage; CFO, Global Tools & Storage & Corporate FP&A | 2010–2022 | Senior P&L and finance leadership across a major consumer/industrial tools platform; responsibilities spanned finance and operating leadership . |
| The Stanley Works | Various finance roles including CFO, Mechanical Access Solutions & Stanley Security Solutions | 1999–2010 | Divisional CFO responsibilities across access/security businesses . |
| United Technologies | Finance positions | 1994–1999 | Early career finance roles at a diversified industrial company . |
External Roles
No public company directorships or committee roles disclosed for McChesney .
Fixed Compensation
| Component | Amount/Term | Notes |
|---|---|---|
| Base salary | $700,000 | Effective with CFO appointment . |
| Target annual bonus | 85% of base | Eligible under CHD Annual Incentive Plan; pro-rated for 2025 based on start date . |
| Target long-term incentive (LTI) | 245% of base | Annual grants typically in March, subject to Committee approval . |
| Sign-on RSU grant | $2,200,000 | Time-based RSUs vest ratably over 2 years from 3/24/2025 . |
| Sign-on cash bonuses | $75,000; $417,222; $125,000 | $75k within 30 days of start; $417,222 paid only if prior employer does not pay 2024 bonus within 30 days of resignation; $125k in March 2026; repayment required if employment terminates within 1 year of start . |
| Perquisites | Executive physical, financial planning, occasional charitable donations | Provided at level comparable to other executives . |
Performance Compensation
Annual Incentive Plan (AIP) design and recent performance context:
- 2025 AIP metrics: Net Sales, absolute Gross Margin (replacing “Relative Gross Margin”), Adjusted Diluted EPS, Cash from Operations, and Strategic Initiatives; equal 20% weights. Overall maximum plan payout reset to 200%; financial metrics max at 220%; Strategic Initiatives payout scale adjusted to 80–120% .
- McChesney is eligible for a pro-rated 2025 AIP payout based on his start date .
FY2024 AIP framework and outcomes (context for plan rigor; McChesney not employed at CHD in 2024):
| Metric (20% weight each) | Threshold | Target | Maximum | Actual (as adjusted) | Rating |
|---|---|---|---|---|---|
| Net Sales ($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 | 0.75–1.50 scale | 0.75–1.50 | 0.75–1.50 | 0.75–1.50 | 1.34 |
- Corporate performance rating: 1.39; AIP rating set at 1.20 given above-peer projected EPS difficulty; Company delivered 12.0% TSR and exceeded plan targets in key metrics .
Long-term incentive program structure:
- Executive LTI mix (2023–2024): 75% stock options, 15% PSUs, 10% RSUs; PSUs based on 3-year relative TSR; options vest fully on 3rd anniversary; PSUs vest on the later of performance certification and 3rd anniversary; RSUs are time-based per award agreements .
Equity Ownership & Alignment
| Policy/Guideline | Requirement | Notes |
|---|---|---|
| Stock ownership guidelines (CFO) | 3.0x base salary | McChesney subject to 3x salary requirement; executive officers have specified multiples; Board and executives monitored for compliance . |
| Anti-hedging/pledging | Prohibited | Insider trading policy bans pledging, short sales, and hedging for directors and employees . |
| Clawbacks | Dodd-Frank and supplemental policies | Clawback policies apply to excess incentive comp due to restatements and broader misconduct/restrictive covenant violations; embedded in AIP and Omnibus equity plan . |
| Beneficial ownership | Not disclosed for McChesney | 246,109,929 shares outstanding as of March 5, 2025; executive and director ownership table did not include McChesney due to timing . |
Employment Terms
| Term | Detail |
|---|---|
| Start date and status | CFO effective March 24, 2025; at-will employment . |
| Severance (non-CIC) | Generally 1x base salary if terminated without Cause or resign for Good Reason (per CIC/Severance Agreement) . |
| Change-in-control (CIC) | Generally 2x base salary and target bonus upon termination without Cause or Good Reason; equity may vest per award agreements/plan upon CIC; NEO cash severance and equity granted after July 30, 2019 require qualifying termination (double-trigger) . |
| Non-compete / non-solicit | Included in revised RSU/PSU grant agreements adopted in 2023; standard confidentiality and forfeiture/recoupment terms . |
| Deferred comp | Eligible for Executive Deferred Compensation Plan II (salary/bonus deferrals; overflow match/profit sharing) . |
| ESPP and benefits | Eligible for Employee Stock Purchase Plan; comprehensive health/welfare; savings and profit sharing with 100% match on first 5% contributions; profit sharing target 5% (range 3–10%) . |
Investment Implications
- Pay-for-performance alignment: CFO target bonus and LTI levels were set around Compensation Peer Group medians and tied to CHD’s diversified AIP metrics and predominantly option-based LTI mix, reinforcing direct linkage to EPS growth, cash generation, and TSR over multi-year horizons .
- Retention and selling pressure: Two-year ratable vesting on the $2.2M sign-on RSUs creates scheduled vesting in 2026 and 2027; while hedging/pledging are prohibited, RSU settlements commonly involve share withholding for taxes, which can add modest periodic supply without signaling discretionary selling .
- Alignment safeguards: Strict ownership guidelines (3x salary for CFO), robust clawbacks, and double-trigger CIC protections limit windfalls and align incentives toward sustained performance and compliant conduct .
- Execution risk: AIP design shifts to absolute gross margin in 2025 and re-capped maximum payouts aim to balance growth with margin discipline; McChesney’s background combining finance and operating leadership (including divisional P&L roles) is strategically suited to these levers as CHD targets continued EPS and cash flow growth .