Scott Kirkland
Chief Financial Officer at ECL
Executive
About Scott Kirkland
Scott D. Kirkland is Ecolab’s Chief Financial Officer, serving as CFO since January 1, 2022, after previously serving as Senior Vice President and Corporate Controller; he has been with Ecolab since 2005 in multiple finance leadership roles. He is 51 years old (FY2024 10-K) and holds a BA in Accounting from the University of Northern Iowa . Under his finance leadership, Ecolab’s pay-versus-performance table shows rising adjusted EPS ($4.49 in 2022, $5.21 in 2023, $6.65 in 2024), higher net income ($1,091.7M in 2022, $1,372.3M in 2023, $2,112.4M in 2024), and improving TSR index (77.87 in 2022, 107.41 in 2023, 128.13 in 2024) . On operations, Kirkland emphasizes SG&A productivity (improved ~150 bps since 2019, with a further 20–30 bps expected in 2025 and 25–50 bps annually beyond) and margin expansion trajectory toward 19%+ OI margin in 2026, per Q3’25 remarks .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ecolab | Chief Financial Officer | Jan 2022 – Present | Principal Financial Officer; led SG&A leverage and margin expansion initiatives; signatory on 10-K certifications |
| Ecolab | Senior Vice President & Corporate Controller (Principal Accounting Officer) | Jun 2019 – Dec 2021 | Oversaw accounting and controls; predecessor role to CFO |
| Ecolab | Senior VP Finance – Global Energy Services | 2016 – 2019 | Division finance leadership (Energy Services) |
| Ecolab | VP Corporate Planning & Analysis; VP Finance APAC & LATAM; other finance leadership roles | Various (pre-2016) | Corporate FP&A and international finance leadership |
External Roles
No public company directorships or external board roles are disclosed for Mr. Kirkland in Ecolab’s recent filings .
Fixed Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary Paid ($) | 637,500 | 787,500 | 829,785 |
| Annualized Base Salary Rate (start of year → post-2024 adjustment) | — | — | $800,000 → $832,000 (4.0%) |
| MIP Target (% of base salary) | — | — | 105% |
| MIP Target Award ($) | — | — | 864,554 |
| Weighted MIP Target – EPS 70% ($) | — | — | 605,188 |
| Weighted MIP Target – Individual 30% ($) | — | — | 259,366 |
| Actual MIP Payout ($) | — | 1,570,453 | 1,729,108 |
Notes:
- 2024 MIP metrics for CFO: 70% EPS; 30% individual goals; Growth & Impact modifier +10% (subject to 200% cap). Achieved: EPS component 200%, individual 154%, resulting in payout elements as shown above and total $1,729,108 .
Performance Compensation
Annual Cash Incentive (MIP) – 2024
| Metric | Weighting | Target ($) | Actual Performance | Payout ($) | Notes |
|---|---|---|---|---|---|
| Adjusted EPS | 70% | 605,188 | 200% of weighted target | 1,210,376 | Corporate adjusted EPS metric |
| Individual Objectives (CFO) | 30% | 259,366 | 154% of weighted target | 399,223 | Finance/organization initiatives (IR, FP&A, treasury, tax, shared services, IS; strategy, digital tools) |
| Growth & Impact Modifier | — | — | +10% (cap at 200%) | 119,509 | Water intensity, workplace inclusivity achievements (companywide) |
| Total 2024 MIP Payout | — | 864,554 | — | 1,729,108 |
Long-Term Equity Incentives (Design and 2024 Grants)
- Mix and metrics:
- PBRSUs: 60% of LTI; performance measured on 3-year average organic ROIC with a relative TSR modifier; payout 0–200% .
- Stock Options: 40% of LTI; options vest 1/3 per year starting on 1st anniversary; value tied to share price appreciation .
- 2024 annual LTI grant (Dec 4, 2024):
- Target PBRSUs: 6,709; Grant date fair value $1,639,545 .
- Stock Options: 15,973; Exercise price $247.495; Grant date fair value $1,068,434; Expiration 12/04/2034; vest 1/3 annually .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (3/11/2025) | 85,387 shares; less than 1% of class (includes options exercisable within 60 days) |
| Options Exercisable within 60 days (3/11/2025) | 71,058 (included in beneficial ownership per SEC rules) |
| Stock Ownership Guidelines | CFO guideline = 3x base salary; retention of 100% of net shares until guideline met |
| Compliance Status (12/31/2024) | Ownership counted for guideline: 10,748 shares; equals 3.0x salary (meets guideline) |
| Hedging/Pledging | Prohibited (no short-term “in and out,” short sales, margin purchases, pledging, or derivatives outside company plans) |
| Outstanding Equity (12/31/2024) | Multiple option tranches outstanding; latest 2024 grant (15,973 options at $247.495) was out-of-the-money at $234.32 FY-close; PBRSUs unearned: 6,709 valued $1,572,053 plus prior cycles (e.g., 9,740 valued $2,282,277; 18,104 valued $4,242,129) |
| Deferred Compensation | 2024 Executive contributions: $35,711; Company contributions: $26,783; Aggregate earnings: $33,845; Year-end balance: $391,202 |
| Company Match (2024) | 401(k)/ESOP match $18,406; Mirror Savings Plan match $130,530 |
Vesting and leverage considerations:
- Options vest 1/3 annually (options in 2017–2021 tranches are in-the-money at $234.32; the Dec-2024 grant at $247.495 was underwater at FY close). PBRSUs vest on 3-year performance cycles tied to organic ROIC and modified by relative TSR .
Employment Terms
| Provision | Key Terms |
|---|---|
| Change-in-Control (CIC) Policy | Double-trigger; applies to all elected officers; no single-trigger benefits; no CIC tax gross-ups |
| Cash Severance (CIC, Qualifying Termination) | 2x (base salary + target annual cash incentive) + pro-rated target bonus for year of termination |
| CFO CIC Estimated Payments (as of 12/31/2024, stock at $234.32) | Cash lump sum: $3,411,200; Outplacement: $166,400; Health premiums: $41,170; Total severance payments: $3,618,770; Accelerated unvested options: 44,975 (#) valued $1,830,910; Accelerated PBRSUs: 25,501 (#) valued $5,975,394; Total potential value: $11,425,074 |
| Death/Disability | Option vesting accelerates; PBRSUs’ service-based conditions deemed satisfied but remain subject to performance; RSUs vest; certain underwater options have no intrinsic value at $234.32 (e.g., 15,973 2024 CFO options) |
| Other Separations | Involuntary (not for cause) or constructive discharge handled case-by-case with confidentiality and non-compete restrictions; installments over regular payroll |
Clawback and recoupment:
- Broad misconduct-based recoupment of cash/equity incentives; separate NYSE Rule 10D-1-compliant clawback for accounting restatements, covering prior 3 fiscal years .
Performance & Track Record
| Measure | 2022 | 2023 | 2024 |
|---|---|---|---|
| Adjusted EPS ($) | 4.49 | 5.21 | 6.65 |
| Net Income ($M) | 1,091.7 | 1,372.3 | 2,112.4 |
| Ecolab TSR Index (Value of $100) | 77.87 | 107.41 | 128.13 |
| Peer Group TSR Index (Value of $100) | 134.82 | 151.73 | 151.67 |
Execution highlights:
- SG&A leverage: improved ~150 bps since 2019; targeting +20–30 bps in FY2025 and 25–50 bps annually thereafter, supported by One Ecolab and technology productivity (Q3’25 call) .
- Margin trajectory: roadmap to at least 19% operating income margin in 2026 with 12–15% EPS growth and 3–4% top line (Q3’25 call) .
- CFO’s 2024 individual MIP objectives: strategic leadership across accounting/audit/FP&A/treasury/tax/IR/shared services/IS; collaboration on financial/investment strategies; deploy digital tools for efficiency and analytics .
Governance, Say-on-Pay, and Peer Benchmarking
- Say-on-pay support: 90% approval at 2024 Annual Meeting; investor outreach to holders of ~52% outstanding shares, meetings with ~42% .
- Benchmarking: Willis Towers Watson and FW Cook general industry executive compensation surveys utilized; pay mix places ~80% of non-PEO NEO target TDC as performance-based .
- Risk and policies: prohibitions on hedging/pledging, robust clawbacks, stock ownership guidelines, payout caps, and committee discretion to reduce awards; compensation risk assessment concluded programs are not reasonably likely to create material adverse risk .
Investment Implications
- Pay-for-performance alignment: High variable mix (MIP + PBRSUs/options), PBRSUs tied to 3-year organic ROIC with TSR modifier, and clear SG&A/margin milestones articulated by CFO support alignment with long-term value creation .
- Selling pressure and vesting cadence: CFO met the 3x ownership guideline (3.0x) as of 12/31/24 and is subject to insider trading/retention policies; recent 2024 option grant is underwater at FY close ($247.495 vs $234.32), limiting near-term monetization from that tranche, though older options are in-the-money and vest annually on a 1/3 schedule .
- Retention and CIC economics: Double-trigger CIC with 2x cash and equity acceleration totals ~$11.4M as of year-end 2024, a moderate but meaningful retention backstop; no CIC gross-ups and strong clawbacks reduce governance risk .