Sarah Martin
LENNOX INTERNATIONALAbout Sarah Martin
Sarah Martin is Executive Vice President and President of Home Comfort Solutions (HCS) at Lennox, appointed effective April 28, 2025, succeeding Gary Bedard after his 26-year tenure . She brings 25+ years of manufacturing/technology leadership, including 13 years at Honeywell where she led multiple sensing businesses; she holds an MBA from the Edinburgh Business School and a Master of Arts in Modern Languages & Business from Heriot-Watt University . Lennox’s compensation framework is pay-for-performance, with STI tied to core net income, free cash flow, and core revenue, and LTI weighted to ROIC and core net income growth; in 2024, company results delivered record revenue, net income, and EPS with one-year TSR of 37%, underscoring alignment between pay and outcomes .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Honeywell International Inc. | President, Honeywell Sensing Solutions; President, Honeywell Sensing & Safety Technologies; President, Honeywell Advanced Sensing Technologies | ~2012–2025 (13 years) | Led large-scale global businesses, optimized distribution channels, and drove profitability growth |
| CTS Corporation | Commercial and operational leadership roles | Pre-2012 | Operational leadership in electronics manufacturing services; foundation for scale and execution capability |
External Roles
No public company directorships or external board roles disclosed in company materials or the appointment press release .
Fixed Compensation
- Base salary, target bonus %, and actual bonus for Sarah Martin have not been disclosed in 2025 filings; Lennox targets the 50th percentile of market for NEOs and structures EVP pay with a mix of base, STI, and LTI under a pay‑for‑performance philosophy .
Performance Compensation
Short-Term Incentive (STI) structure (Company-level; segment leaders blend company+segment)
| Metric | Weight | Threshold | Target | Maximum | 2024 Performance |
|---|---|---|---|---|---|
| Company Core Net Income | 50% | $545,600k | $682,000k | $795,700k | $808,396k |
| Company Free Cash Flow | 30% | $367,500k | $525,000k | $700,000k | $784,190k |
| Company Core Revenue | 20% | $4,500,000k | $5,000,000k | $5,500,000k | $5,344,437k |
| HCS Segment Profit | 50% | $549,100k | $668,400k | $760,700k | $758,906k |
| HCS Segment Controllable Cash Flow | 30% | $463,400k | $662,000k | $832,100k | $770,817k |
| HCS Segment Revenue | 20% | $3,055,500k | $3,395,000k | $3,734,500k | $3,656,305k |
- In 2024, company STI payout was ~217% of target for NEOs measured 100% on company metrics; segment leaders (e.g., HCS) blended company and segment factors; no discretionary individual modifiers were applied .
Long-Term Incentive (LTI) design and vesting
| Component | Allocation | Vesting | Economics |
|---|---|---|---|
| PSUs | 50% of LTI | 3-year performance period | Metrics: ROIC (weighted), and 3-year CAGR in core net income; payout 50%-200% of target based on performance |
| RSUs | 30% of LTI | 3-year cliff | Retention-focused; no dividends during vesting |
| Stock Appreciation Rights (SARs) | 20% of LTI | 1/3 per year; 7-year term | Exercise price = FMV (avg high/low on grant date); pays in stock on exercise |
- Most recent completed PSU cycle (Dec 2021 grant, performance 2022–2024): ROIC 48.4% vs max 40%; core net income CAGR 20.1% vs max 20%, yielding a 200% payout, illustrating emphasis on returns and profitable growth .
Equity Ownership & Alignment
| Policy/Guideline | Detail |
|---|---|
| Stock ownership | EVP guideline: 3x annual base salary; executives must retain net shares until in compliance |
| Anti-hedging/pledging | Prohibits hedging, short sales, derivatives, and pledging/margin accounts for Company stock |
| Clawback | Company will recover excess incentive compensation after a financial restatement (3-year lookback) |
| Pay philosophy | Median compensation positioning; strong pay-for-performance linkage; no repricing, no cash buyouts of underwater SARs/options |
Compliance status, beneficial ownership, vested/unvested breakdown, options in-the-money value, and any pledging for Sarah Martin are not disclosed.
Employment Terms
| Topic | Key Terms |
|---|---|
| Employment agreement | Auto-renews annually unless notified; includes post-employment non-compete and non-solicit provisions |
| Non-compete / non-solicit | Non-compete and non-solicit generally for 24 months post-termination |
| Severance (non‑CIC) | “Enhanced severance” upon not‑for‑cause termination (or CEO good reason), scaled by service: up to 2 years base salary, lump‑sum of last 24 months’ STI, 10% base salary in lieu of outplacement/perqs, COBRA premiums up to 18+6 months, vacation payout; unvested equity forfeited; vested SARs exercisable for 90 days (or remainder of term for retirements) |
| Retirement treatment | Proration at vest/end of period for RSUs/PSUs if retiree eligible; SARs remain exercisable for remainder of term |
| CIC Severance Plan | Double-trigger vesting; no excise tax gross‑ups; for NEOs other than CEO, cash severance reduced to 2x base + 2x target bonus; equity subject to double-trigger; healthcare up to 24 months |
| Death/disability | Immediate SAR vesting; prorated RSUs/PSUs based on service portion; payouts at cessation |
Performance & Track Record
- Product leadership: As HCS President, Martin was the executive voice behind the launch of the Elite Series EL18KSLV Side Discharge Heat Pump (compact, variable-capacity design, 19.00 SEER2/10.00 HSPF2) supporting all‑electric solutions and dealer needs .
- Segment context: In Q1 2025 (pre‑start quarter), HCS revenue was $721M (+7%), segment margin 16.2% (−40 bps), with price/mix offsetting tariff/commodity costs; volumes were flat amid low-GWP transition, highlighting operational execution priorities she inherits .
Investment Implications
- Compensation alignment: STI metrics blend company and HCS performance (profit, cash flow, revenue), directly incentivizing profitable growth and cash generation in Martin’s segment; LTI emphasis on ROIC and core net income CAGR aligns with returns‑focused value creation .
- Retention risk mitigants: Two‑year severance (non‑CIC) scale, robust non‑compete/non‑solicit, and double‑trigger CIC terms reduce flight risk; anti-hedging/pledging and clawback reinforce shareholder alignment .
- Execution watchpoints: Near-term margin sensitivity to tariffs, factory ramp‑up inefficiencies, and low‑GWP product transitions in HCS; monitor pricing actions, mix, and distribution investments referenced by management .
- Governance support: Strong say‑on‑pay approval (~93% in 2025) indicates investor confidence in compensation design and oversight—supportive backdrop for pay-for-performance incentives under Martin’s leadership .
- Trading signals: Track any Form 4 activity, PSU/LTI grants, and segment KPIs across 2025–2026 earnings as heat pump adoption and low‑GWP transitions mature; product launch cadence (e.g., EL18KSLV) and pricing realization will be key drivers .
Appointment and role details ; background/education . 2024 performance highlights and compensation framework . STI and HCS metrics . Ownership/clawback/hedging policies . Employment/severance/CIC terms . HCS product launch (EL18KSLV) . Say-on-pay voting . Q1 2025 HCS performance .