Olumide Soroye
FortiveAbout Olumide Soroye
Fortive named Olumide Soroye, then President and CEO of the Intelligent Operating Solutions (IOS) segment (and also leading Advanced Healthcare Solutions in 2025), as successor to CEO James Lico upon completion of the Precision Technologies separation; in June 2025 he signed Fortive’s Employee Matters Agreement as President and CEO of IOS and AHS segments . Company performance under the incentive framework emphasizes Adjusted EPS, Free Cash Flow, Core Revenue Growth and relative TSR; in 2024 Fortive delivered Adjusted EPS of $3.89, Free Cash Flow of $1.4B, ~27% Adjusted Operating Margin, and 1.3% Core Revenue Growth (driving an annual company performance factor of 100.3%) . Say‑on‑pay support was 92.06% in 2024, indicating strong shareholder alignment with compensation practices .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Fortive | President & CEO, Intelligent Operating Solutions (IOS) | 2024–2025 | Led IOS segment; expanded innovation funnel by 50% and advanced AI-driven products; improved bookings momentum via >20 Kaizen events . |
| Fortive | President & CEO, IOS and Advanced Healthcare Solutions (AHS) | 2025 | Signed Employee Matters Agreement for Ralliant spin; leadership over IOS and AHS businesses . |
| Fortive | CEO successor-designate (post-separation) | Announced 2024 | Expected to become Fortive CEO upon separation of Precision Technologies/Ralliant . |
External Roles
- Not disclosed in company filings reviewed.
Fixed Compensation
Multi-year reported compensation (Summary Compensation Table):
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2024 | 764,430 | 4,297,191 | 1,659,209 | 1,183,950 | 157,297 | 8,062,077 |
| 2023 | 750,006 | 3,847,053 | 1,443,226 | 1,351,125 | 152,766 | 7,544,176 |
| 2022 | 750,006 | 3,201,245 | 1,064,209 | 1,594,016 | 197,614 | 6,807,090 |
2024 cash compensation and bonus design:
| Item | 2024 detail |
|---|---|
| Base salary | $750,000 (NEOs held flat vs 2023) . |
| Target annual incentive | 150% of salary ($1,125,000) . |
| Actual payout | $1,183,950 (Composite Performance Factor 105.2%) . |
| Personal Strategic Factor | 125% for Soroye (20% weight in composite) . |
| Company Performance Factor | 100.3% (80% weight in composite) . |
| Perquisites | Eligible for $10,000 financial services stipend; received executive physical; occasional event tickets . |
| Deferred compensation | EDIP registrant contribution $112,501; year-end balance $596,572 . |
Performance Compensation
Annual Incentive Plan (AIP) – 2024 metrics, targets, and results:
| Metric (weight) | Target | Actual | Payout % (pre-weight) |
|---|---|---|---|
| Adjusted EPS (60%) | $3.79 | $3.89 | 126.3% |
| Free Cash Flow, $mm (20%) | 1,375 | 1,406 | 122.5% |
| Core Revenue Growth (20%) | 4.0% | 1.3% | 0% |
| Weighted Company Performance Factor | — | — | 100.3% |
Individual Strategic Performance (Soroye) – 2024:
| Category (wt) | Goal | Performance assessment | Weighted payout |
|---|---|---|---|
| Extraordinary Teams (20%) | Improve employee experience, succession, leadership | Improved turnover and engagement; built leadership funnels; key talent hires in IOS | 25% |
| Customer Success (20%) | Drive organic/inorganic innovation | 50% expansion in IOS innovation funnel; advanced AI-driven products and productivity | 25% |
| Kaizen (20%) | Reduce cyber/geopolitical risk | Reduced manufacturing footprint risk in IOS | 25% |
| Shareholders (40%) | Segment financials: growth, margins, ROIC | Strong IOS results; margin expansion; >20 Kaizen events improving bookings momentum | 50% |
| Total Strategic Factor | — | — | 125% |
Long‑Term Incentive (LTI) structure and 2024 grants:
- Mix and metrics: PSUs (60% rTSR vs S&P 500; target at 55th percentile), PSUs (40% three‑year average Core Revenue Growth set annually), RSUs and Stock Options; PSUs include 1‑year post‑vest holding; no prorated vesting before full 3‑year period; RSUs and options vest 50% in years 3 and 4 .
- 2024 grant details (Soroye):
- Stock Options: 49,510 options @ $84.79 grant price .
- RSUs: 16,340 base RSUs; earned +10% incremental RSUs (1,634) based on 28.4% Adjusted EBITDA Margin (threshold) .
- PSUs (Target): 32,680 target shares; 60% rTSR/40% Core Revenue Growth .
| Award | Grant date | Quantity/terms |
|---|---|---|
| Stock Options | 3/4/2024 | 49,510 options; $84.79 strike; 50% vest at years 3 and 4 . |
| RSUs (base + incremental) | 3/4/2024 | 16,340 base; +1,634 incremental (10%) at 28.4% Adj. EBITDA Margin . |
| PSUs (target) | 3/4/2024 | 32,680 target; 60% rTSR (55th pctle target); 40% 3‑yr Core Rev Growth; +1‑yr hold . |
PSU outcomes (prior cycle): 2022 PSUs paid at 91.5% of target overall; Soroye earned 31,342 shares (3‑year TSR ~50th percentile; Core Growth average 95.6%) .
Equity Ownership & Alignment
Beneficial ownership and outstanding equity (as of April 7/Dec 31, 2024):
| Item | Detail |
|---|---|
| Beneficial ownership | 147,802 shares (less than 1% of class) . |
| Components noted | Includes options to acquire 112,005 shares and 6,945 notional EDIP phantom shares . |
| Unvested RSUs | 82,417 units; $6,181,275 value at $75.00/share . |
| Unearned PSUs (at target) | 69,435 units; $5,207,625 value at $75.00/share . |
| Unexercised options (by grant) | 3/4/2024: 49,510 unexercisable @ $84.79; 2/27/2023: 55,680 unexercisable @ $66.62; 2/28/2022: 51,870 unexercisable @ $64.75; 8/25/2021: 86,070 exercisable and 86,070 unexercisable @ $74.36 . |
| 2024 vesting/exercises | Stock awards vested: 55,736 shares; value $4,141,009; options exercised: none . |
| Ownership guidelines | Executive officers: 3x base salary; CEO: 5x base salary . |
| Hedging/pledging | Prohibited for directors and executive officers (no pledging or hedging) . |
Employment Terms
Severance and change‑in‑control (CIC) program:
| Provision | CEO | Other NEOs (Soroye until CEO transition) |
|---|---|---|
| CIC cash severance (double‑trigger) | 2x base salary + target annual incentive . | 1x base salary + target annual incentive . |
| CIC equity | Immediate vesting of all unvested awards at target for performance conditions . | Same . |
| Non‑CIC severance (without cause) | 2x base salary; prorated AIP based on actual performance; equity continues to vest pro‑rata on schedule, subject to performance . | 1x base salary; same AIP/equity treatment . |
| Benefits continuation | CEO: 24 months (CIC and non‑CIC); Other NEOs: 12 months . | |
| Policies | No excise tax gross‑ups; no single‑trigger CIC benefits . | |
| Clawback | Restatement‑based recovery; board discretion to recoup including time‑based equity for gross misconduct; unvested awards forfeited upon gross misconduct . | |
| Insider trading | Strict policy; prohibits short sales and derivatives/hedging . |
Individualized estimated severance values (as of 12/31/2024):
| Scenario | Components | Estimated total |
|---|---|---|
| Termination without cause (non‑CIC) | Equity (pro‑rata/cont’d vest), benefits, severance; AIP per policy | $10,056,535 . |
| Death | Accelerated equity; EDIP; etc. | $11,033,106 . |
| CIC termination (double‑trigger) | Accelerated equity at target, severance (1x salary+target bonus), benefits, prorated AIP | $18,038,299 . |
Spin-related employment covenants (context): Fortive–Ralliant Employee Matters Agreement includes short no‑hire (6 months) and no‑solicit (18 months) mutual restrictions between the companies post‑distribution, signed June 27, 2025 by Soroye for Fortive .
Performance Compensation – Additional Design Details
| Element | 2024 design details |
|---|---|
| PSU rTSR structure | Target at 55th percentile vs S&P 500; threshold at 25th percentile (25% of target); max at 75th percentile (200%); capped at 100% if absolute TSR negative . |
| PSU Core Revenue Growth | Annual targets set at/above guidance midpoint; 2024 target 4.0%; actual 1.3% yielded 0% for year one (averaged over 3 years for payout) . |
| RSU incremental feature | 10–50% of base RSUs added based on Adj. EBITDA Margin (≥28.4% threshold; 29.2% max); 2024 earned +10% at 28.4% . |
Say‑on‑Pay & Shareholder Feedback
- 2024 say‑on‑pay approval: 92.06% in favor .
- 2024 program refinements: Company performance weighting increased to 80% (from 60%); rTSR structure aligned to peers; removed positive TSR “floor” payout; peer group refined; policy adopted capping severance >2.99x without shareholder approval .
Investment Implications
- Pay‑for‑performance alignment with clear levers: 2024 AIP drove neutral company factor (100.3%) amid 1.3% Core Growth, with Soroye’s above‑target strategic factor (125%) reflecting segment execution and AI‑driven innovation progress—suggesting balanced upside exposure to EPS/FCF delivery and organic growth acceleration .
- Retention risk appears well‑mitigated by substantial unvested equity and long‑dated vesting: 82,417 unvested RSUs and 69,435 target PSUs (plus sizable unexercised options) create multi‑year retention hooks; 2024 saw vesting of 55,736 shares and no option exercises, limiting near‑term selling pressure risk signals .
- Governance safeguards reduce downside risk: robust clawback (including time‑based equity), hedging/pledging prohibitions, double‑trigger CIC, and no excise gross‑ups support shareholder alignment, while high say‑on‑pay approval (92%) lowers governance overhang .
- Strategic execution watch‑items: With Soroye slated to become CEO post‑separation, focus on sustaining Core Revenue Growth (a PSU driver that scored 0% in 2024) and maintaining rTSR outperformance will be decisive for realized equity value; 2022 PSU payout (91.5%) shows historical discipline, but forward outcomes hinge on growth trajectory and market‑relative performance .
- Spin readiness and leadership continuity: His signature on the Employee Matters Agreement and dual‑segment leadership underscore transition readiness; equity plan renewal to 2035 further supports ongoing equity‑based retention and alignment through and after the separation .