Marc Vandiepenbeeck
Johnson Controls InternationalAbout Marc Vandiepenbeeck
Executive Vice President & Chief Financial Officer of Johnson Controls since January 2024, promoted from Vice President & President, Building Solutions EMEALA (appointed August 2023) after nearly 20 years at JCI across finance and treasury roles; prior role as CFO for Building Solutions North America . He holds a bachelor’s degree in business engineering (Université Libre de Bruxelles) and a master’s in management (Solvay Brussels School) . Pay-for-performance outcomes tied to enterprise metrics were below target in FY2024: annual incentive paid at 96% of target and FY2022–2024 PSUs earned at 84.3% of target, aligning compensation with results on EBIT growth, revenue growth, and TSR . As CFO, he outlined FY2025 performance and outlook: adjusted EPS +17%, record backlog $15B (+13%), and ~102% free cash flow conversion; long‑term algorithm targeting mid‑single‑digit organic growth, 30%+ operating leverage, double‑digit EPS growth, and ~100% FCF conversion .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Johnson Controls | EVP & CFO (Principal Financial Officer) | Jan 2024–present | Drives transformation, operating leverage and capital allocation framework; reinforced ~100% FCF conversion guidance . |
| Johnson Controls | VP & President, Building Solutions EMEALA | Aug 2023–Jan 2024 | Led decarbonization/service growth across EMEALA; global assignment returned to US upon CFO appointment . |
| Johnson Controls | CFO, Building Solutions North America | Not disclosed | Finance leadership for the services, digital transformation, and sustainability growth vectors . |
| Johnson Controls | Finance & Treasury (multiple roles) | Not disclosed | Supported global markets, operations, and strategic growth initiatives . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | — |
Fixed Compensation
| Component | FY2024 Value | Notes |
|---|---|---|
| Base Salary | $750,000 | Promotional increase to CFO in Feb 2024 (25% increase vs $600,000 prior target base) . |
| Target Bonus % of Salary | 96.6% | Prorated: 33.6% of FY at 90% target; 66.4% at 100% target after promotion . |
| Actual Annual Incentive Paid | $695,803 | AIPP payout at 96% of target for FY2024 . |
Performance Compensation
Annual Incentive Performance Program (AIPP) – FY2024
| Metric | Weighting | Target | Actual | Payout Factor | Vesting/Payment |
|---|---|---|---|---|---|
| EBIT Growth | 33.3% | Committee-set (Dec 2023) | Below target (enterprise) | Contributes to 96% total payout | Cash, paid FY2024 . |
| Revenue Growth | 33.3% | Committee-set (Dec 2023) | Below target (enterprise) | Contributes to 96% total payout | Cash, paid FY2024 . |
| Enterprise Free Cash Flow Conversion | 33.3% | Committee-set (Dec 2023) | Contributes to payout | Within 96% total payout | Cash, paid FY2024 . |
| Strategic Initiative Modifier (YOY Organic Service Revenue Growth) | ±15% | +15% if >12%; -15% if <7.5% | 8.2% (modifier 0%) | 0% modifier applied | Applied to pool . |
| Business Unit Modifier | Applied | 100% | Company-wide assessment for NEOs | 100% | Applied . |
| Individual Modifier | Applied | 100% | Based on leadership actions | 100% | Applied . |
| Total AIPP Payout | — | — | — | 96% of target | $695,803 . |
Long-Term Incentives – FY2024 Grants and Structure
| Grant Type | Metric(s) | Weighting | Vesting | FY2024 Target Grant Value |
|---|---|---|---|---|
| PSUs | 3-year cumulative pre‑tax earnings; recurring revenue; relative TSR vs S&P 500 Industrials (equally weighted) | 50% | Cliff vest after 3 years | $680,000 |
| Share Options | Stock price appreciation | 25% | 50% vest at 2 years; 50% at 3 years; 10-year term; strike = closing price on grant date | $340,000 |
| RSUs | Stock price performance | 25% | Equal installments over 3 years | $1,382,500, plus $1,042,500 promotional RSU in Feb 2024 |
| One‑time Retention RSU | Retention (no performance metric) | — | 100% vest after 2 years; special termination rules | $2,750,000 (Aug 2, 2024) |
FY2022–2024 PSU Outcome (Earned/To Vest)
| Vesting Date | Shares (PSUs) |
|---|---|
| Dec 8, 2024 | 2,491 |
| Dec 8, 2025 | 7,652 |
| Dec 7, 2026 | 25,854 |
| FY2022–2024 Payout Rate | 84.3% of target |
Option and RSU Schedules (Selected Tranches)
| Instrument | Vesting Date | Quantity | Strike/Notes |
|---|---|---|---|
| Options | Dec 5, 2025 | 12,373 | $53.52 strike |
| Options | Dec 8, 2025 | 3,364 | $66.77 strike |
| Options | Dec 7, 2026 | 12,373 | $53.52 strike |
| RSUs | Feb 1, 2025 | 6,504 | Scheduled vest |
| RSUs | Dec 8, 2025 | 7,665 | Scheduled vest |
| RSUs | Aug 2, 2026 | 40,789 | Scheduled vest (includes retention grant) |
| RSUs | Feb 1, 2026 | 6,503 | Scheduled vest |
Option exercises and stock vested (FY2024 realized): Vandiepenbeeck had no option exercises and 6,848 shares vested from stock awards ($366,002 realized) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership (% of shares outstanding) | <1% |
| Options exercisable/vesting within 60 days of Jan 7, 2025 | 32,309 options |
| RSUs vesting within 60 days of Jan 7, 2025 | 6,535 RSUs |
| Shares outstanding (reference date) | 660,139,188 (Jan 7, 2025) |
| Executive share ownership guidelines | 3× base salary for all other NEOs (CEO 6×) |
| Compliance status at FY2024 end | All NEOs compliant or within allowed time to meet guidelines |
| Hedging/Pledging | Prohibited: no pledging, no derivative/hedging transactions |
Anti-hedging/anti-pledging and ownership requirements strengthen alignment and reduce pledging risk .
Employment Terms
| Provision | Key Terms |
|---|---|
| Severance (no CIC) | 1.5× base salary + target bonus; benefits continuation aligned to multiple; pro‑rated equity acceleration; must sign release; restrictive covenants apply |
| Change‑in‑Control (CIC) | Double trigger; 2× base salary + target bonus; pro‑rated equity acceleration; pro‑rated target bonus for year of termination; no excise tax gross‑up |
| Non‑compete | 1.5 years post‑termination |
| Non‑solicit | 2 years post‑termination (employees and customers) |
| Clawback | Mandatory recoupment for restatements; discretionary for misconduct causing reputational harm; authority to recover compensation from culpable individuals |
| Potential Payments (illustrative as of Sep 30, 2024, $77.61 stock price) | CIC with Qualified Termination: Severance $3,749,999; Benefits $210,229; Equity acceleration $8,608,663. Involuntary without Cause: Severance $2,250,000; Benefits $68,422; Equity $2,293,924. Death/Disability: Equity $8,608,663 . |
Compensation Structure Notes
- Majority of compensation is variable and performance-based; equity mix balances PSUs (50%), options (25%), and RSUs (25%), with meaningful upside/downside and minimum vesting periods .
- Equity grant timing policy avoids market timing; annual grants generally first business day of December; off‑cycle grants generally the second business day after next quarterly earnings release .
- No single‑trigger vesting on CIC; no tax gross‑ups; prohibition on repricing options without shareholder approval .
Performance & Track Record
- FY2025 commentary by Vandiepenbeeck: organic revenue +4% in Q4; segment margin 18.8% (+20bp); adjusted EPS $1.26 (+14% YoY); available cash ~$400M; net leverage ~2.4×; FY2025 adjusted FCF ~$2.5B and ~102% conversion .
- Long‑term algorithm upgraded: mid‑single‑digit organic revenue growth, 30%+ operating leverage, double‑digit adjusted EPS growth, ~100% FCF conversion; FY2026 guidance: adjusted EPS ~$4.55 (>20% YoY), ~50% operating leverage; backlog $15B (+13%) supports visibility .
- FY2024 compensation outcomes reflect below-target performance on EBIT growth, revenue growth, pre‑tax earnings growth, and TSR; AIPP 96% and PSUs 84.3% payout .
Governance and Policies Relevant to Incentives
- Robust executive share ownership guidelines (CEO 6×, other NEOs 3× base salary) and strict anti‑hedging/anti‑pledging .
- Clawback exceeds regulatory minimums; executive compensation philosophy emphasizes pay-for-performance and alignment with stakeholders .
Equity Vesting Calendar: Near-Term Trading Pressure Indicators
| Date | Instrument | Quantity | Potential Signal |
|---|---|---|---|
| Feb 1, 2025 | RSU | 6,504 | Modest vesting; potential tax‑withholding sales. |
| Dec 5, 2025 | Options | 12,373 @ $53.52 | In‑the‑money if stock >$53.52; possible exercise/sale activity. |
| Dec 8, 2025 | RSU | 7,665 | Vesting; potential withholding/sales. |
| Dec 8, 2025 | PSU | 7,652 (FY22–24 tranche) | Earned PSUs vest; settlement may create liquidity events. |
| Aug 2, 2026 | RSU | 40,789 | Large retention RSU vest; elevated selling/withholding pressure likely. |
| Dec 7, 2026 | Options | 12,373 @ $53.52 | Additional option tranche. |
| Dec 7, 2026 | PSU | 25,854 (FY22–24 tranche) | Earned PSUs vest; settlement impact. |
FY2024 Form 4 activity could not be programmatically retrieved due to an API authorization error; however, proxy tables show no option exercises by Vandiepenbeeck in FY2024 and 6,848 shares vested from stock awards ($366,002) . Attempted insider-trades skill call failed (401 Unauthorized).
Investment Implications
- Pay-for-performance alignment: AIPP and PSU outcomes below target in FY2024 demonstrate discipline; FY2025/2026 targets emphasize operating leverage and FCF conversion, reinforcing cash‑quality and margin focus under Vandiepenbeeck’s CFO leadership .
- Retention and vesting overhang: A sizable two‑year retention RSU ($2.75M; 40,789 shares vesting Aug 2, 2026) and multiple RSU/PSU/option tranches create identifiable dates for potential insider withholding/exercise activity; watch Q4/FY calendar windows for flow .
- Alignment/controls: 3× salary ownership guideline, anti‑hedging/anti‑pledging, and clawback provisions mitigate misalignment and pledging risks; double‑trigger CIC terms and no tax gross‑ups are shareholder‑friendly .
- Retention risk and severance economics: CIC qualified termination implies ~$12.6M in potential severance/benefits/equity acceleration at Sep 30, 2024 prices; involuntary termination without cause ~$4.6M; non‑compete/non‑solicit add retention friction, but large scheduled vesting could motivate tenure through FY2026 .
- Execution signals: CFO’s emphasis on working capital and inventory discipline to sustain ~100% FCF conversion and raising operating leverage to ~50% in FY2026 are positive for valuation; monitor realization and margin progression, especially in EMEA/APAC and data center verticals .