Eric Hammes
Envista HoldingsAbout Eric Hammes
Eric Hammes (age 50) is Envista’s Senior Vice President and Chief Financial Officer, joining in July 2024 after leadership roles at Rockwell Automation and 3M; he brings deep finance, operations, and transformation experience including serving as 3M’s SVP Controller & Chief Accounting Officer and multiple EVP roles . 2024 corporate results under the refreshed plan included total revenue of $2,510.6 million, adjusted EBITDA margin of 11.8%, free cash flow of $302.8 million, and a net loss of $1,118.6 million; pay-versus-performance disclosure shows 2024 TSR value of $65.08 for a $100 initial investment vs peer group $146.87 . He executed SOX 302/906 certifications in Q3’25 as CFO, consistent with his role overseeing controls and reporting .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Rockwell Automation | Vice President, Corporate FP&A | Aug 2023–Jul 2024 | Led corporate FP&A at a global industrial automation firm, shaping budgeting and performance management . |
| 3M Company | EVP, Chief Country Governance & Services Officer | Jan 2022–May 2023 | Oversaw country governance/services, strengthening global operating model . |
| 3M Company | EVP, Enterprise Operations | Apr 2019–Dec 2021 | Drove enterprise operations and efficiency programs . |
| 3M Company | EVP, Business Transformation & IT | Jun 2017–Apr 2019 | Led transformation and IT initiatives across the enterprise . |
| 3M Company | SVP, Controller & Chief Accounting Officer | Apr 2014–Apr 2017 | Principal accounting leadership, controls, reporting oversight . |
| 3M Health Care Business Group | CFO (prior role) | Not specified | Finance leadership for Health Care; earlier roles included Orthodontic Products finance and International Finance . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | — | — | No external public-company directorships or board roles disclosed in proxy/filings . |
Fixed Compensation
| Component | 2024 | 2025 | Notes |
|---|---|---|---|
| Base Salary ($) | 575,000 | 600,000 | 2025 increase of ~4.3%. |
| ICP Target Bonus (% of Salary) | 75% | 75% | Prorated for 2024 based on start date . |
| Actual Annual Bonus Paid ($) | 168,934 | — | 2024 payout based on Revised ICP performance . |
| One-time Cash Bonus ($) | 1,020,000 (12-month clawback) | — | New-hire inducement . |
| Annual LTI Target ($) | 1,200,000 | 1,300,000 | Increased 8.3% for 2025 . |
Performance Compensation
| Metric | Weight | Threshold | Target | Maximum | Actual 2024 | Payout Basis |
|---|---|---|---|---|---|---|
| Core Sales Growth (YoY %) | 50% | (3.8)% | (1.8)% | 0.2% | (1.5)% | 103.8% achievement under Revised ICP . |
| Adjusted EBITDA Margin (%) | 40% | 9.6 | 11.6 | 13.6 | 11.8 | 102.5% achievement under Revised ICP . |
| Adj. Free Cash Flow to Adj. Net Income Ratio (%) | 10% | 85 | 105 | 135 | 239.4 | Max 125% cap applied . |
| Company Financial Factor (CFF) | — | — | — | — | 105.4% | Revised ICP result . |
| Personal Performance Factor (PPF) | — | — | — | — | 100% | Committee discretion . |
| Hammes 2024 ICP Payout | — | — | — | — | 105% of target | Envista CFF (105%) × PPF (1.0); prorated target $160,889; payout $168,934 . |
| Equity Grant Type | Grant Date | Number of Units/Options | Vesting | Grant-Date Fair Value ($) |
|---|---|---|---|---|
| RSUs (one-time new hire) | 8/25/2024 | 64,175 | Ratable annually over 3 years (each 8/25) | 1,200,073 |
- Special performance-based stock options (133% stock-price hurdle, 3-year cliff) were granted broadly to NEOs on 8/25/2024, but not to Hammes due to his recent new-hire RSU grant .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (shares) | 24,532 shares held directly (5). |
| Shares outstanding | 169,467,689 (as of Apr 14, 2025) . |
| Ownership as % of shares outstanding | ~0.014% (24,532 / 169,467,689; inputs cited) . |
| Unvested RSUs (12/31/2024) | 64,175; market value $1,237,936 . |
| Options (exercisable/unexercisable) | None disclosed for Hammes at FY-end 2024 . |
| Stock ownership guidelines | SVP level: 2× base salary; 5-year window to comply; NEOs in compliance or have time remaining as of 12/31/2024 . |
| Pledging/Hedging | Pledging prohibited; hedging prohibited by policy . |
Employment Terms
| Provision | Terms |
|---|---|
| Letter Agreement (CFO) | June 23, 2024; Base $575k; ICP target 75%; LTI target $1.2m; one-time cash $1.02m (12-month clawback); one-time RSUs $1.2m vest over 3 years; relocation allowances . |
| Severance Plan (No CIC) | Severance multiple: 1.0× salary + 1.0× target bonus; prorated bonus; lump-sum health premium contribution (up to 12× multiple, capped at 18 months) . |
| Severance Plan (Double Trigger CIC) | Multiple increases by 0.5; full vesting of unvested equity (PSUs at target); 18 months health premium; prorated bonus at target (offset for CIC bonus) . |
| Potential Payments (Hammes at 12/31/2024) | No CIC termination: $1,027,804 total (includes $21,554 benefits continuation; $1,006,250 cash severance) . CIC termination: $2,779,642 total (includes $32,331 benefits continuation; $1,509,375 cash severance; RSU acceleration $1,237,936) . |
| Clawback Policy | Company-wide recoupment applies to covered executives for 3 years prior to a Big R/little r restatement; additional recovery for misconduct; plan-level forfeiture provisions exist . |
Investment Implications
- Pay-for-performance and retention: Hammes’ 2024 cash bonus was modest (105% of prorated target) and equity was primarily time-based RSUs due to mid-year hire; absence of performance options reduces near-term forced selling but creates a three-year vesting supply to monitor for selling pressure around anniversary dates .
- Alignment and risk controls: Low direct ownership (~0.014%), strong policy frameworks (no pledging/hedging; clawbacks; ownership guidelines) mitigate alignment risks; watch progression toward 2× salary ownership over the five-year window .
- Severance/CIC economics: Double-trigger CIC provides enhanced cash multiples and full equity acceleration (PSUs at target), creating potential change-of-control incentives; no single-trigger cash severance .
- Execution track record: Biography indicates extensive transformation and operations experience; 2024 results exceeded the revised CFF targets in EBITDA/free cash flow under the turnaround plan, supporting incentive payouts and providing early evidence of disciplined financial management .
Overall: Governance and incentive structures are reasonably disciplined; monitor RSU vesting calendars (Aug 25 annually), ownership accumulation versus guideline, and any future inclusion in performance-linked equity to strengthen pay-for-performance signals .