Eric Ashleman
IDEX CORP /DE/About Eric Ashleman
Eric D. Ashleman, age 58, is IDEX Corporation’s Chief Executive Officer and President, and has served as a director since December 2020. He holds a BA in economics and an MBA from the University of Michigan and previously led key operating roles across IDEX’s segments and businesses, shaping the company’s culture, business model and global strategy . In 2024, IDEX reported Adjusted EBITDA of $874.3 million, Net Income of $505.0 million, an organic sales decline of 1.9%, and a 5-year TSR value of $129 for a hypothetical $100 investment versus $198 for peers, metrics that anchor executive incentive outcomes and pay-for-performance alignment . Approximately 87% of his 2024 target pay is performance-based, with long-term incentives representing ~71% of total targeted pay; the Compensation Committee raised his total target pay by 19.5% for market alignment and strong performance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| IDEX Corporation | Chief Executive Officer and President; Director | CEO/Director since Dec 2020; President since Feb 2020 | Integral to developing IDEX’s distinct culture, business model, and global strategy |
| IDEX Corporation | Chief Operating Officer | Jul 2015 – Feb 2020 | Senior operating leadership across diversified segments |
| IDEX Corporation | SVP & Group Executive (Global Dispensing; Fire & Safety/Diversified Products; Health & Science and Optics) | Feb 2014 – Jul 2015 | Led multiple segments driving industrial operations and growth |
| IDEX Corporation | VP & Group Executive (Fire & Safety/Diversified Products) | Sep 2011 – Feb 2014 | Segment leadership in industrial products |
| IDEX/Gast Manufacturing | President, Gast Manufacturing and Global Dispensing | Apr 2010 – Sep 2011 | Business unit leadership, operational execution |
| IDEX/Gast Manufacturing | Joined IDEX as President, Gast Manufacturing | Mar 2008 | Entry into IDEX operating leadership track |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Modine Manufacturing Co. | Director | Current | Public company directorship |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $948,462 | $992,308 | $1,040,385 (paid) / Rate: $1,050,000 |
| Target Bonus % of Salary | n/a | 115% | 125% |
| Actual Bonus Paid ($) | $1,668,480 | $828,000 | $787,500 |
Performance Compensation
| Metric | Weighting | Threshold | Goal | Maximum | Actual | Payout | Notes |
|---|---|---|---|---|---|---|---|
| Adjusted EBITDA | 40% | $862.7M | $927.5M | $1,050.1M | $870.2M | 36.6% | Cash bonus factor component |
| Organic Sales Growth | 40% | -3.0% | 1.0% | 5.0% | -1.9% | 47.0% | Cash bonus factor component |
| Adjusted Cash Flow Conversion | 10% | 80% | 100% | 129% | 110% | 140.6% | Cash bonus factor component; weighting rising to 20% in 2025 |
| Sustainability | 10% | Goals/initiatives | Goals/initiatives | Goals/initiatives | 125.0% | 125.0% | Removed from 2025 MICP; continued oversight via annual goals |
| Total Business Performance Factor | — | — | — | — | — | 60.1% | Determines annual bonus payout |
| 2024 LTI Grants (CEO) | Grant Date | Shares/Options | Exercise Price | Grant Date Fair Value ($) |
|---|---|---|---|---|
| PSUs (relative TSR vs S&P 500) | Feb 22, 2024 | 12,505 target | n/a | $4,371,623 |
| Stock Options (4-year ratable vest, 10-year term) | Feb 22, 2024 | 46,070 | $235.13 | $2,940,187 |
Key LTI design features:
- PSUs vest over ~3 years based on relative TSR; threshold at 33rd percentile pays 33% of target; target at 50th pays 100%; max at 80th pays 250%; payouts capped at 100% if absolute TSR is negative; one-year post-vest holding requirement .
- 2025 LTI adds RSUs (25% of LTI), reduces options to 25%, and keeps PSUs at 50%; the PSU now includes two metrics: 75% relative TSR and 25% net income growth over ~3 years .
Equity Ownership & Alignment
| Ownership Detail | Amount | Notes |
|---|---|---|
| Beneficial Ownership (Shares) | 253,840 | Includes options exercisable within 60 days; <1% of outstanding |
| Options Exercisable within 60 Days | 196,222 | As of March 13, 2025 |
| Options Outstanding (Unexercisable grants) | 11,989; 24,677; 29,299; 46,070 | See detailed option table; various expirations 2027–2034 |
| PSUs Outstanding (Target) | 10,850 (2022); 10,525 (2023); 12,505 (2024) | Vests 1/31/2025; 1/31/2026; 1/31/2027; payout based on relative TSR |
| 2024 Shares Vested (PSUs) | 4,695 | 2021 PSU payout at 50% multiplier; release price $226.97 |
| CEO Stock Ownership Guideline | 5x base salary | Executives must comply within 5 years; company states all NEOs meet/exceed or are on track |
| Hedging/Pledging | Prohibited | Company bans hedging and pledging for all directors and employees |
Insider selling pressure indicators:
- Retirement-eligible status as of 12/31/2024 means awards vest upon retirement, potentially increasing settlement volumes upon retirement; PSUs still settle based on actual performance at period end and are subject to a one-year holding requirement .
- No option exercises reported for the CEO in 2024, reducing near-term selling signals; PSUs from 2021 vested in 2024 at 50% .
Employment Terms
| Provision | Terms |
|---|---|
| Severance (No Change in Control) | 1x base salary + 1x target MICP bonus (cash), payable upon involuntary termination without cause |
| Change-in-Control (Double Trigger) | 2x base salary + 2x target MICP bonus (cash) if terminated without cause or for good reason within 24 months following a change in control; equity awards accelerate under plan rules |
| Equity Treatment at Change-in-Control | If not assumed/substituted, awards vest; if terminated within 24 months post-CoC, awards fully vest; 2022–2024 PSUs convert to cash based on performance achieved at CoC with specified credited earnings until payment |
| Retirement Eligibility | As of 12/31/2024, CEO satisfies retirement vesting conditions; options/RSUs vest at retirement; PSUs vest and earn based on actual performance at the end of the period |
Quantification of CEO termination scenarios (as of 12/31/2024, stock price $209.29):
| Scenario | Cash Severance ($) | Unvested Options ($) | Unvested PSUs ($) | Total ($) |
|---|---|---|---|---|
| Involuntary Not for Cause (No CoC) | 2,362,500 | 646,969 | 1,601,100 | 4,610,569 |
| Disability, Death or Retirement | — | 646,969 | 1,601,100 | 2,248,069 |
| Change in Control (No Termination) | — | — | — | — |
| Involuntary Not for Cause or Good Reason Following CoC | 4,725,000 | 646,969 | 1,596,009 | 6,967,978 |
Other compensation components:
- Clawbacks: Dodd-Frank-compliant clawback plus broader policy covering time-based awards and certain improper conduct .
- Perquisites: Automotive and fuel allowance; supplemental disability; CEO’s 2024 perquisite component $29,135 .
- SERP/Deferred Compensation: Aggregate balance $2,447,492 at FY-end; company contributions disclosed; unfunded, unsecured account with specified crediting rate rules .
Board Governance and Director Service
- Board Role: Eric D. Ashleman is a Class III director nominee for a term through the 2028 meeting; previously elected by stockholders; not independent due to CEO/President role .
- Board Leadership: Non-Executive Chair in place since Oct 1, 2022; independent directors chair all committees; independent directors meet in executive session at every regular meeting; the Board held eight meetings in 2024 .
- Committee Memberships: Standing committees are fully independent; Ashleman does not serve on Audit, Compensation, or Nominating & Governance committees .
- Attendance: Each director holding office in 2024 attended more than 75% of Board and committee meetings; all directors attended the 2024 Annual Meeting .
- Director Compensation: CEO receives no additional compensation for director service; standard non-management director cash retainer $95,000 and equity grants per policy .
Multi-Year CEO Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 948,462 | 992,308 | 1,040,385 |
| Stock Awards ($) | 2,548,123 | 3,243,595 | 4,371,623 |
| Option Awards ($) | 2,050,207 | 2,374,761 | 2,940,187 |
| Non-Equity Incentive ($) | 1,668,480 | 828,000 | 787,500 |
| All Other Compensation ($) | 279,955 | 320,212 | 231,773 |
| Total ($) | 7,495,227 | 7,758,876 | 9,371,468 |
Compensation Structure Analysis
- Mix and leverage: CEO’s 2024 targeted pay is ~71% LTI and ~87% performance-based, reinforcing long-term alignment with shareholder value creation .
- 2025 design changes: Introduction of RSUs (25% of LTI) and addition of net income growth (25% weighting) alongside relative TSR (75%), reducing reliance solely on market-relative outcomes and elevating profit growth focus; cash flow conversion weighting increased in annual bonus from 10% to 20% .
- Market alignment: CEO target total pay increased 19.5% in 2024 to align more closely with market median based on peer and survey benchmarks .
- Governance: No option repricing; no excise tax gross-ups; independent consultant (F.W. Cook) with no conflicts; robust clawbacks and ownership guidelines; hedging/pledging prohibited .
Say-On-Pay & Shareholder Feedback
- Support levels: 2023 say-on-pay received >94% support; 2024 received >91% support, affirming shareholder alignment with program structure .
Risk Indicators & Red Flags
- Positive controls: Clawbacks, ownership guidelines, prohibition of hedging and pledging, independent committees, and no related person transactions since Jan 1, 2024 .
- Execution risk signals: 2024 business performance factor at ~60% reflects headwinds (low organic sales, EBITDA below goal) leading to below-target cash incentive payouts; 2021 PSU payout at 50% (37th percentile TSR) indicates modest market-relative performance during that cycle .
- Dual-role implications: CEO serves on the Board but is not Chair; independence concerns mitigated by Non-Executive Chair and fully independent committees .
Expertise & Qualifications
- Academic credentials: BA in economics and MBA, University of Michigan .
- Industrial and operational depth: Significant manufacturing and operations leadership across diversified segments; developed operating culture and global strategy for IDEX .
Investment Implications
- Pay-for-performance alignment remains robust, with strong governance safeguards (clawbacks, no hedging/pledging, no repricing) and high shareholder support, limiting compensation-related downside risk .
- 2025 incentive redesign adds RSUs and net income growth weighting, which may lower volatility in realized pay and intensify focus on profitable growth; increased cash flow conversion weighting in the bonus may strengthen cash discipline, supporting capital allocation and M&A execution .
- Retirement eligibility and sizable outstanding equity could create episodic settlement-related supply upon retirement; however, PSUs retain performance gating and a one-year holding period, reducing immediate selling pressure signals .
- Operational headwinds in 2024 (organic sales decline, EBITDA under goal) drove below-target payouts, highlighting execution risks; management’s track record and design changes suggest a push toward profit growth and cash conversion to re-accelerate TSR versus peers .