Aravind Padmanabhan
About Aravind Padmanabhan
Executive Vice President and Chief Technology Officer (CTO) at nVent Electric plc (NVT) and one of the company’s Named Executive Officers (NEOs). Company performance under his tenure highlights: 2024 sales from continuing operations grew 13% to $3.0B; adjusted EPS from continuing operations rose 7% to $2.49; free cash flow reached $427M; and annualized TSR was 17% at the 59th percentile of the comparator group . In 2023, sales were $3.264B (+12% YoY), adjusted EPS was $3.06 (+28%), free cash flow was $465M, and annualized TSR was 56% at the 95th percentile of the comparator group and 81st percentile of the S&P 400 Industrials .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| nVent Electric plc | Executive Vice President, Chief Technology Officer | Not disclosed | CTO interfaces with Board/Audit Committee on cybersecurity and AI risk oversight |
External Roles
No external directorships disclosed for Mr. Padmanabhan in the latest proxy .
Fixed Compensation
Multi-year compensation components (as reported in the Summary Compensation Table):
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $468,768 | $495,436 | $516,687 |
| Stock Awards ($) | $525,017 | $674,960 | $825,026 |
| Option Awards ($) | $175,004 | $224,996 | $275,013 |
| Non-Equity Incentive Plan Compensation ($) | $589,680 | $556,000 | $433,160 |
| All Other Compensation ($) | $40,027 | $31,509 | $37,269 |
| Total Compensation ($) | $1,798,496 | $1,982,901 | $2,087,155 |
Base salary and annual bonus targets:
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $472,500 | $500,000 | $520,000 |
| Target Bonus (% of Salary) | Not disclosed | 80% | 85% |
| Target Bonus ($) | Not disclosed | $400,000 | $442,000 |
Perquisites and benefits (2024):
| Category | Amount ($) |
|---|---|
| Perquisites/Other Personal Benefits and Tax Reimbursements | $14,008 (includes executive physical, service award gross-up, charitable donation) |
| Contributions under Defined Contribution Plans | $23,250 |
| Employee Stock Purchase Plan Match | $11 |
Performance Compensation
Annual Incentive (MIP) structure and outcomes (enterprise-wide metrics apply to NEOs):
| Performance Measure | Weight (%) | Threshold | Target | Maximum | 2024 Result | Payout (%) | Weighted Payout (%) |
|---|---|---|---|---|---|---|---|
| Revenue | 30 | $3,353M | $3,605M | $3,857M | $3,511M | 81% | 24% |
| Adjusted EPS | 30 | $2.91 | $3.27 | $3.63 | $3.25 | 97% | 29% |
| Free Cash Flow | 25 | $446M | $524M | $629M | $562M | 136% | 34% |
| ESG Scorecard (composite) | 15 | See proxy | See proxy | See proxy | Determined by Committee | 66% | 10% |
| Total MIP Payout | — | — | — | — | — | — | 98% of target |
Long-Term Incentives (2024 design):
- Mix: 50% PSUs (Relative TSR vs S&P 400 Industrials), 25% stock options, 25% RSUs; RSUs/options vest one-third annually over three years; PSUs vest after three-year performance period .
- PSU metric and payout curve (2024–2026): 25th percentile=50%, 50th=100%, 75th=200%; cap at target if absolute TSR is negative .
- Achievement under 2022–2024 PSUs: TSR at 82nd percentile; payout 200% .
Mr. Padmanabhan’s 2024 equity grants:
| Grant Type | Threshold (#) | Target (#) | Maximum (#) | Exercise Price ($) | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| PSUs (2024–2026) | 2,646 | 5,292 | 10,584 | — | $549,998 |
| RSUs (time-based) | — | 4,001 | — | — | $275,029 |
| Stock Options | — | 10,127 | — | 68.74 | $275,013 |
Equity Ownership & Alignment
Beneficial ownership (as of March 19, 2025):
| Holding Category | Shares |
|---|---|
| Ordinary Shares | 11,999 |
| Share Units (deferred RSUs) | 72,901 |
| Right to Acquire within 60 Days (primarily options) | 79,888 |
| Total | 164,788 |
Unvested equity (as of 12/31/2024):
| Security | Count | Vesting Schedule |
|---|---|---|
| RSUs (2022 grant) | 1,745 | 1/3 on Mar 5, 2025 |
| RSUs (2023 grant) | 3,251 | 1/3 annually on Mar 5, 2024–2026 |
| RSUs (2024 grant) | 4,001 | 1/3 annually on Mar 5, 2025–2027 |
| PSUs (2023–2025 target) | 6,548 | Expected vest 12/31/2025 |
| PSUs (2024–2026 target) | 5,292 | Expected vest 12/31/2026 |
Ownership guidelines and policies:
- Stock ownership guideline (CTO/EVP level): 2.5x base salary; all then-serving NEOs met guidelines as of Dec 31, 2024 (Ms. Bennett on track) .
- Equity holding policy: executives must retain 100% of net shares until guidelines are met .
- Anti-hedging and anti-pledging: prohibited for employees and executive officers .
Deferred compensation (Sidekick Plan, 2024):
| Item | Amount ($) |
|---|---|
| Executive Contributions | $2,738,596 |
| Company Contributions | $6,000 |
| Aggregate Earnings | $542,220 |
| Aggregate Balance (12/31/2024) | $4,813,322 |
Employment Terms
Severance and change-in-control protections:
- Severance Plan: 1.5x (salary + target bonus) for NEOs other than CEO; 18 months medical continuation; up to 12 months outplacement; 24-month restrictive covenants required .
- Equity under change-in-control: awards granted after Dec 11, 2022 require double trigger; immediate vesting if awards are not assumed/substituted; pre-12/11/2022 awards accelerate at transaction (options/RSUs fully vest; PSUs paid at better of target or trend; annual incentive paid at target) .
- Clawback policy: recovery of incentive-based compensation upon qualifying accounting restatements per SEC/NYSE standards; additional forfeiture policy for misconduct .
- Insider trading policy: prohibits hedging/pledging and certain derivative transactions by employees/executive officers .
Quantification (as of 12/31/2024):
| Scenario | Severance ($) | Medical ($) | Outplacement ($) | Option Vesting ($) | RSU Vesting ($) | PSU Vesting ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| Involuntary (without cause) | 1,443,000 | 31,374 | 50,000 | 418,548 | 613,236 | 807,014 | 3,363,172 |
| Retirement/Death/Disability | — | — | — | — | — | — | 1,838,798 |
Compensation Structure Analysis
- At-risk pay emphasis maintained: MIP tied to revenue, adjusted EPS, free cash flow, and ESG; LTI mix remains PSUs (50%), options (25%), RSUs (25%) .
- MIP target increased for CTO from 80% to 85% of salary in 2024, tightening pay-for-performance leverage .
- LTI target rose from $900,000 (2023) to $1,100,000 (2024), increasing alignment with shareholder returns through PSUs and options .
- No excise tax gross-ups; no option repricing/backdating; rigorous ownership and holding requirements support alignment .
Comparator group (used for benchmarking executive pay; 2024 set): Acuity Brands, AMETEK, Atkore, Belden, EnerSys, ESAB, Generac, Graco, Hubbell, IDEX, ITT, Kennametal, Lincoln Electric, Littelfuse, Regal Rexnord, Sensata, SPX, Timken, Woodward (Altra removed in 2025 review) .
Say-on-Pay: Shareholders approved NEO compensation at ~97% in 2024 outreach (2025 proxy), and ~96% in 2023 outreach (2024 proxy), indicating broad support for program design .
Related party transactions: None reported for 2023; none currently proposed .
Investment Implications
- Alignment: Elevated equity mix (PSUs/options/RSUs) and strict ownership/holding/anti-hedging policies reduce misalignment and hedging/pledging risk .
- Near-term selling pressure: RSUs/option tranches vest annually through 2027; PSUs vest based on 2025 and 2026 TSR outcomes, potentially creating routine but measured liquidity events rather than large one-time sell pressure .
- Performance sensitivity: 2024 MIP paid ~98% of target vs. 139% in 2023; continued focus on revenue, adjusted EPS, and free cash flow calibrates cash incentives to operating delivery; PSUs fully leverage multi-year TSR against peers (200% payout for 2022–2024 performance) .
- Retention risk: Enhanced LTI target in 2024 and double-trigger CIC protections bolster retention; severance and restrictive covenants (24 months) further stabilize leadership continuity .