Srikanth Padmanabhan
Executive Vice President and President – Operations at CMI
Executive
About Srikanth Padmanabhan
Srikanth Padmanabhan is Executive Vice President and President – Operations at Cummins Inc., appointed January 1, 2024; he is age 60 and previously led the Engine Business from 2016–2023 . He holds a PhD in Mechanical Engineering (Iowa State University), a bachelor’s in Mechanical Engineering (National Institute of Technology, Trichy), and completed Harvard Business School’s Advanced Management Program . In 2024, Cummins delivered adjusted EBITDA of $5,266 million and adjusted operating cash flow of $3,419 million, driving a 170% annual bonus payout for participants; the 2022–2024 long-term cycle paid at 150% based on 3-year adjusted EBITDA of $14,384 million and ROIC of 17.66% (targets: $12,875 million EBITDA; 15% ROIC) . Cummins reported $34.1 billion in sales and ~$3.9 billion in net income in 2024, underscoring strong operating performance during his operations leadership period .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cummins Inc. | Executive Vice President & President – Operations | 2024–2025 | Led AI/IT and shared services transformation; SG&A simplification targeting $400M 3-year savings; margin improvement via supply chain . |
| Cummins Inc. | Vice President & President – Engine Business | 2016–2023 | Led periods of record revenues; advanced HELM fuel-agnostic platforms; improved product quality and JV growth . |
| Cummins Emission Solutions | Vice President; Head of CES | 2008–2014 | Scaled CES growth; global compliance with emissions regulations; JV formation and component expansion (urea dosing) . |
| Cummins Generator Technologies | Managing Director | ~2004–2008 | Drove revenue and profit growth in Power Generation; prepared for CES leadership role . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Terex Corporation (NYSE: TEX) | Director | Effective Dec 1, 2025 | Appointment announced, brings 34 years of global operations expertise . |
| Leggett & Platt Incorporated | Director | Current (as of 2025) | Public company board member . |
| National Association of Manufacturers | Board representative | Various | Industry advocacy and governance representation . |
| American Transportation Research Institute | Board representative | Various | Transportation research and policy engagement . |
| Cummins Foundation | Board representative | Various | Community engagement and philanthropy . |
Fixed Compensation
| Metric | 2024 |
|---|---|
| Base Salary ($) | $820,000 |
| Target Annual Bonus ($) | $820,000 |
| Actual Annual Bonus Paid ($) | $1,394,000 (170% payout) |
| Non-Equity Incentive (Performance Cash, 2022–2024) ($) | $675,000 (150% payout on $450,000 target) |
| Pension/Deferred Comp Change ($) | $580,362 total; includes $1,876 above-market earnings |
| All Other Compensation ($) | $53,390 (financial counseling, aircraft use, life insurance, 401(k) contribution) |
| Total Compensation ($) | $8,357,057 |
Performance Compensation
| Annual Bonus Plan (Corporate) | Weighting | Target | Actual | Payout |
|---|---|---|---|---|
| EBITDA ($ millions) | 70% | $4,436 | $5,266 | 200% |
| Operating Cash Flow ($ millions) | 30% | $3,385 | $3,419 | 100% |
| Final Payout Factor | — | — | — | 170% |
| Long-Term Performance (2022–2024 Cycle) | Weighting | Target | Actual | Payout |
|---|---|---|---|---|
| 3-year Cumulative EBITDA ($ millions, adjusted) | 20% | $12,875 | $14,384 | Contributes to 150% |
| 3-year ROIC (adjusted, %) | 80% | 15% | 17.66% | Contributes to 150% |
| Cycle Payout | — | — | — | 150% |
| Long-Term Targets (2024–2026 Corporate Plan) | Weighting | Notes |
|---|---|---|
| ROIC | 80% | Long-term ROIC target reaffirmed; correlates with TSR . |
| EBITDA | 20% | Uses 3-year period; payouts 0–200% based on thresholds/maximums . |
| Special Equity Awards (Retention PRSUs, granted 2024) | Target Value | Vesting & Milestones | Status |
|---|---|---|---|
| Performance-based RSUs (multi-year) | $3,250,000 (2024: $1,250,000; 2025: $1,000,000; 2026: $1,000,000) | Each tranche vests after one year contingent on annual milestones and service | 2024 tranche earned in full; vest satisfaction noted Feb 19, 2025; not eligible for 2025/2026 due to retirement . |
Equity Ownership & Alignment
| Ownership Detail | Amount |
|---|---|
| Beneficial Ownership (Shares) | 73,997 (includes 535 in 401(k) and 29,560 options exercisable within 60 days of March 14, 2025) |
| Percent of Class | <1% |
| Outstanding Performance Shares at Target | 2023 grant: 9,420; 2024 grant: 13,860 |
| Matching RSUs (Deposit Share Program, 5/31/2024 grant) | 4,193 units; fair value $1,064,058; vest on 4th anniversary (May 31, 2028) |
| Performance-based RSUs (12/19/2024 grant) | 5,370 units; fair value $1,871,982; 1-year vesting; earned based on 2024 milestones |
| Options Exercised/Vested in 2024 | Options exercised: 22,070 shares; value realized $3,850,120; shares vested: 8,505; value $2,298,561 |
| Stock Ownership Guidelines | 3× base salary for Cummins Leadership Team members; compliance required within defined timeframes |
| Hedging/Pledging Policy | Officers/directors prohibited from hedging or pledging Cummins securities |
| Clawback Policy | Recoupment for accounting restatements, fraud/misconduct causing material harm; SEC- and listing-compliant |
Employment Terms
| Provision | Terms / Economics |
|---|---|
| Retirement Timing | Indicated intention to retire effective April 1, 2025 (proxy); eligible for retirement terms on defined awards . |
| Severance (Non-CIC) | Policy: up to 12 months’ base salary; pro-rated annual bonus at normal timing (release required) . |
| Change-in-Control (CIC) | Double-trigger; for NEOs other than CEO: 2× salary + 2× annual bonus at 1.0 factor; full vesting of certain insurance/retirement; continued benefits for 2 years; best-net-of-taxes cutback (no gross-ups) . |
| Award Treatment (Termination Scenarios for Padmanabhan, as of 12/31/2024) | See table below . |
| Non-Compete/Confidentiality | Agreement not to accept employment with certain competitors during and for 12 months after employment; confidentiality . |
| Padmanabhan – Estimated Payments by Scenario (as of 12/31/2024) | Voluntary | Involuntary Not-for-Cause | Termination for Cause | Retirement | Death | Disability |
|---|---|---|---|---|---|---|
| Severance ($) | $0 | $820,000 | $0 | $0 | $0 | $0 |
| Annual Bonus ($) | $0 | $1,394,000 | $0 | $1,394,000 | $1,394,000 | $1,394,000 |
| Performance Cash 2023–2025 ($) | $0 | $0 | $0 | $320,000 | $320,000 | $320,000 |
| Performance Cash 2024–2026 ($) | $0 | $0 | $0 | $225,000 | $225,000 | $225,000 |
| Performance Shares 2023–2025 ($) | $0 | $0 | $0 | $1,094,604 | $1,094,604 | $1,094,604 |
| Performance Shares 2024–2026 ($) | $0 | $0 | $0 | $805,266 | $805,266 | $805,266 |
| Restricted Stock Units ($) | $0 | $1,871,982 | $0 | $2,115,595 | $2,115,595 | $2,115,595 |
| Outplacement ($) | $0 | $5,310 | $0 | $0 | $0 | $0 |
| Welfare Benefits ($) | $0 | $31,416 | $0 | $0 | $0 | $0 |
| Financial Counseling ($) | $0 | $13,745 | $0 | $13,745 | $13,745 | $13,745 |
| Life Insurance ($) | $0 | $0 | $0 | $0 | $2,460,000 | $0 |
| Aggregate Payments ($) | $0 | $4,136,453 | $0 | $3,852,615 | $8,428,210 | $5,968,210 |
Performance & Track Record
- 2024 initiatives under Operations leadership: top-quartile safety trajectory; >$150 million SG&A savings within a $400 million 3-year target; gross margin improvement via purchasing/manufacturing/logistics; revitalized Cummins Operating System; AI/IT/shared services transformation; community Vision2050 engagement .
- Engine Business leadership contributed to record revenues, JV growth, HELM fuel-agnostic platforms, and product quality improvements .
- Compensation outcomes aligned with operating performance: 170% corporate annual bonus payout in 2024; 150% payout for 2022–2024 long-term cycle driven by above-target ROIC/EBITDA .
Compensation Structure Analysis
- Pay-at-risk emphasis: For NEOs, majority of target pay in performance-linked elements; 2024 LTI 100% performance-based (70% performance shares; 30% performance cash) .
- Shift away from options: Committee eliminated stock options starting with 2021 grant; no options granted in 2024 .
- Special retention awards: 2024 PRSUs tied to annual milestones and one-year vesting; for Padmanabhan, only 2024 tranche earned; 2025/2026 tranches forfeited due to retirement indication—reduces forward equity overhang .
- Governance safeguards: robust clawback, anti-hedging/anti-pledging, stock ownership requirements (3× salary for CLT) .
Say-on-Pay & Shareholder Feedback
- 2024 advisory Say-on-Pay vote: 94.0% support; no material changes implemented in response .
Expertise & Qualifications
- Technical depth: Mechanical engineering PhD and global manufacturing/operations leadership across India, U.S., Mexico, U.K. .
- Executive roles across Cummins segments (Power Generation, Components, Emissions, Engine) with demonstrated product innovation and operational excellence .
- External industry leadership via NAM and ATRI; public company board experience (Leggett & Platt; Terex) .
Work History & Career Trajectory
| Organization | Role | Years | Notes |
|---|---|---|---|
| Cummins Inc. | Joined company | 1991 | Progressive leadership roles; global assignments . |
| Cummins Filtration (Mexico) | Country Manager | n/a | Prior leadership experience; dates not disclosed . |
| Cummins Filtration (Cookeville, TN) | Plant Manager | n/a | Led largest plant at the time; dates not disclosed . |
| Cummins Fuel Systems | Manufacturing leadership | n/a | Various roles; dates not disclosed . |
Investment Implications
- Near-term event risk: Retirement triggers defined treatment of long-term awards and RSUs; special PRSU tranches beyond 2024 forfeited—reducing incremental insider selling pressure; however, vesting/accelerations at retirement could create one-time liquidity events in April 2025 per termination tables .
- Alignment is strong: Prohibitions on hedging/pledging, high ownership requirements, and clawback policies mitigate agency risk; 94% Say-on-Pay suggests investor support for pay design .
- Pay-for-performance signal: 170% annual bonus and 150% LTIP payouts reflect strong EBITDA/ROIC execution under his operations leadership, supporting confidence in operational efficiency initiatives (SG&A and margin programs) .
- Succession/continuity: With Padmanabhan retiring, watch governance disclosures and operations leadership continuity; compensation committee’s market-median targeting and performance metrics (ROIC/EBITDA/cash flow) suggest continuity of incentives for successors .