Chris Kosel
LENNOX INTERNATIONALAbout Chris Kosel
Chris A. Kosel is Vice President, Chief Accounting Officer and Controller at Lennox International (LII), age 58 as of April 9, 2025, and has served in this role since 2017 . He was appointed CAO and Controller effective May 1, 2017, following senior finance roles across Lennox’s business units; he participates in the company’s short- and long-term incentive programs with a 2017 STI target of 45% of base salary (0–225% payout range) . Company performance during his tenure has been strong: 2024 revenue up 7%, net income up 37% to $807M, operating cash flow up 28% to $946M, and one-year TSR of 37% (three-year 95%, five-year 166%) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lennox International | Vice President, Business Analysis & Planning | Nov 2016 – Apr 2017 | Senior FP&A leadership; enterprise analysis |
| Lennox International – North America Commercial BU | Vice President, Finance & Controller / Director, Finance | May 2015 – 2016 | Segment finance leadership; controllership |
| Lennox International – Residential BU | Director, Financial Planning & Analysis | Apr 2014 – May 2015 | Segment FP&A leadership |
| Lennox International – Parts Plus BU | Director, Finance | Aug 2012 – Apr 2014 | Business unit finance leadership |
| Lennox International – Financial Shared Services | Director | Apr 2008 – Aug 2012 | Led shared services finance operations |
External Roles
No public external directorships or roles disclosed for Kosel in the company’s filings .
Fixed Compensation
- Base salary amounts for Kosel are not disclosed in recent proxy statements (not a named executive officer) .
Performance Compensation
Program design and metrics applicable to executive officers (Kosel participates in STI and LTI programs) :
- Short-Term Incentive (STI): Company financial metrics include core net income, free cash flow, and core revenue; segment leaders also have segment metrics .
- Long-Term Incentive (LTI): PSUs tied to three-year ROIC and core net income growth; SARs to align with stock price appreciation; RSUs for retention .
Company outcomes influencing incentive payouts:
| Metric | 2024 Outcome |
|---|---|
| Revenue growth | +7% YoY |
| Net income | $807M (+37% YoY) |
| Operating cash flow | $946M (+28% YoY) |
| Free cash flow | $785M (+61% YoY) |
| TSR | 37% (1-year); 95% (3-year); 166% (5-year) |
| PSU payout (2012–2024 cycle noted) | 200% for 2022–2024 PSUs under LTI program |
Kosel-specific STI target at appointment:
| Component | Detail |
|---|---|
| STI target | 45% of base salary; payout range 0–225% of target (2017, prorated based on appointment date) |
Note: Individual STI/LTI award values, vesting schedules, and actual payouts for Kosel are not disclosed in proxies (non-NEO) .
Equity Ownership & Alignment
Beneficial ownership reported in prior proxies (Rule 13d-3 definitions include shares acquirable within 60 days via vested SARs/earned PSUs/RSU vesting):
| Metric | FY 2022 | FY 2023 |
|---|---|---|
| Common stock held (#) | 823 | 826 |
| May be acquired within 60 days (#) | 3,770 | 4,598 |
| Total beneficially held (#) | 4,593 | 5,424 |
| Percent of class | <1% | <1% |
Alignment policies:
- Prohibition on hedging and pledging of company stock applies to directors, NEOs, all employees (and designees); also prohibits margin accounts .
- Clawback policy to recover excess incentive compensation for executive officers upon financial restatements (three prior fiscal years) .
- Stock ownership guidelines disclosed for CEO and EVPs (6x and 3x salary, respectively); robust ownership governance highlighted at board level. VP-specific multiples are not detailed in the proxy .
Employment Terms
- Appointment: Board appointed Kosel as Vice President, Chief Accounting Officer and Controller effective May 1, 2017; age 50 at the time .
- Current status: Executive officer list confirms role and age 58 as of April 9, 2025; tenure in current role since 2017 .
- Incentives: Participates in company STI and LTI variable pay programs (STI target 45% of salary in 2017, prorated) .
- Related party/arrangements: No family relationships, no arrangements leading to selection, and no material related-party transactions reported at appointment .
- Post-employment restrictions: Company maintains non-competition/non-solicitation restrictions as part of compensation governance .
- Hedging/pledging: Prohibited for all employees and executives .
- Clawback: Applicable to executive officers .
Investment Implications
- Alignment: Participation in company-wide pay-for-performance programs tied to ROIC, net income growth, core revenue, and FCF suggests solid linkage of compensation to value drivers; anti-hedging/pledging and clawback policies further reinforce alignment .
- Retention risk: Long tenure since 2017 and broad internal finance leadership history point to institutional knowledge; absence of disclosed individual severance/change-in-control economics limits visibility into retention incentives versus peers .
- Ownership signal: Reported beneficial ownership is modest (<1% of shares) with a portion acquirable via vested equity; while this is typical for non-NEOs, it provides limited “skin-in-the-game” versus EVPs/NEOs. Company-wide stock ownership governance mitigates misalignment risk .
- Performance backdrop: Strong recent corporate performance and high say-on-pay support (97% approval in 2024) indicate effective execution and compensation governance; Kosel’s accounting leadership sits within this favorable operating context .