Jennifer A. Parmentier
Parker-HannifinAbout Jennifer A. Parmentier
Jennifer A. Parmentier is Chairman of the Board (since January 2024) and Chief Executive Officer (since January 2023) of Parker-Hannifin; she is age 58 and a director since 2023 . Her prior roles at Parker include Chief Operating Officer (Aug 2021–Dec 2022), President – Motion Systems Group (Feb 2019–Aug 2021), and President – Engineered Materials Group (Sept 2015–Feb 2019), after joining Parker in 2008; pre-Parker roles included operations leadership at Ingersoll Rand Trane Residential Systems and Magna (1989–2008) . Pay-for-performance linkage is strong: FY2025 Officer ACIP paid 139.09% of target as segment operating income and cash flow margin were above target (sales revenue slightly below target) , while the 2022–2024 LTIP paid 162.22% of target on top-quartile revenue growth and above-median EPS growth/ROIC ; Parker’s FY2025 stock price ended at $698.47 vs $505.81 in FY2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Parker-Hannifin | Chairman of the Board | Jan 2024–present | Overall leadership, oversight; drives The Win Strategy across culture, growth, customer experience and performance . |
| Parker-Hannifin | Chief Executive Officer | Jan 2023–present | Leads global operations and strategy; implements The Win Strategy to drive profitable growth and financial performance . |
| Parker-Hannifin | Chief Operating Officer | Aug 2021–Dec 2022 | Oversaw operating groups; strengthened execution across operations and regions . |
| Parker-Hannifin | President – Motion Systems Group | Feb 2019–Aug 2021 | Advanced market-driven innovation and profitable growth in Motion Systems . |
| Parker-Hannifin | President – Engineered Materials Group | Sept 2015–Feb 2019 | Drove value pricing, lean enterprise, and operational excellence . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Nordson Corporation (Nasdaq: NDSN) | Director | 2020–present | Cross-industry insights and governance experience . |
| Ingersoll Rand Trane Residential Systems | Operations leadership | 1989–2008 | Deep operations and supply chain experience . |
| Magna Corporation | Operations leadership | 1989–2008 | Manufacturing operations expertise . |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | 1,086,667 | 1,383,333 | 1,462,500 |
| Non-Equity Incentive Plan Compensation ($) | 3,043,673 | 3,961,507 | 3,356,416 |
| All Other Compensation ($) | 493,682 | 970,295 | 1,244,248 |
| Total Compensation ($) | 16,404,346 | 18,735,187 | 19,317,705 |
Additional FY2023 detail (All Other Compensation):
- Company contributions: $353,279; life insurance premiums: $72,124; perquisites: $68,279 (including corporate aircraft personal use incremental cost $39,462) .
FY2025 Officer ACIP detail:
| Component | Amount |
|---|---|
| Base Salary Earned ($) | 1,462,500 |
| Target ACIP ($) | 2,413,125 |
| Actual ACIP Paid ($) | 3,356,416 |
| Payout vs Target | 139.09% |
Performance Compensation
LTIP metrics and 2022–2024 payout:
| Metric | Weight | Company Result | Peer Percentile Rank | Weighted Payout % |
|---|---|---|---|---|
| Revenue Growth | 40% | 30.18% | 77.77 | 80.00% |
| EPS Growth | 40% | 64.08% | 61.11 | 57.78% |
| Average ROIC | 20% | 17.68% | 55.55 | 24.44% |
| Total LTIP Payout | — | — | — | 162.22% |
- LTIP payouts are in unrestricted shares after a 3-year period; for the 2022–2024 LTIP, shares vested and were issued in April 2025 (e.g., Parmentier 24,747 shares) .
FY2025 equity grants (Plan-Based Awards):
| Grant Type | Grant Date | Shares/Options | Exercise/Base Price ($/sh) | Grant Date Fair Value ($) |
|---|---|---|---|---|
| LTIP Award (CY25–26–27) Target | 1/22/2025 | 9,360 target; 18,720 max | — | 6,313,226 |
| Stock Incentives (SARs) | 8/14/2024 | 32,930 | 578.39 | 6,941,315 |
Equity Ownership & Alignment
- Beneficial ownership: 89,835 shares (includes 1,042 via Retirement Savings Plan and 41,011 shares subject to Stock Incentives exercisable on or before Sept 30, 2025); no director or executive officer beneficially owns ≥1% .
- Stock Ownership Guidelines: CEO must hold 6x annual base salary; recommended compliance timeframe 5 years; all executives/directors in position ≥5 years were in compliance as of June 30, 2025 . Anti-hedging and anti-pledging policies apply to directors and executive officers .
- Option exercises and vesting (FY2025): | Item | Count/Value | |---|---| | Options exercised (shares) | 18,010 | | Value realized on exercise ($) | 9,056,641 | | Shares acquired on LTIP vesting | 24,747 | | Value realized on vesting ($) | 14,373,305 |
Outstanding equity awards (as of June 30, 2025):
| Award | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration | Unearned LTIP Shares (#) | LTIP Payout Value ($) |
|---|---|---|---|---|---|---|
| SARs | 10,220 | — | 209.56 | 8/11/2030 | — | — |
| SARs | 14,840 | — | 296.00 | 8/10/2031 | — | — |
| SARs | 11,506 | 5,754 | 299.19 | 8/16/2032 | — | — |
| SARs | 14,199 | 28,401 | 406.32 | 8/15/2033 | — | — |
| SARs | — | 32,930 | 578.39 | 8/13/2034 | — | — |
| LTIP (2023–25) | — | — | — | — | 17,700 | 12,362,919 |
| LTIP (2024–26) | — | — | — | — | 13,031 | 9,101,763 |
| LTIP (2025–27) | — | — | — | — | 9,409 | 6,571,904 |
Employment Terms
- No written employment agreement; executives instead have Change in Control Severance Agreements .
- Change-in-control mechanics: Double trigger (change in control plus qualifying termination) required; severance equals 3x base salary + annual cash incentive; welfare benefits continuation for 3 years; LTIP paid at greater of target or performance to date; outstanding unvested Stock Incentives vest upon change in control; certain plans grant additional credits; some executives (including Ms. Parmentier) retain excise tax gross-up due to pre-2016 agreements .
- Estimated payments upon qualifying termination in connection with a change in control (as of June 30, 2025): | Component | Amount ($) | |---|---| | Severance Pay | 12,688,410 | | Accelerated Vesting of Stock Incentives | 14,549,044 | | Defined Contribution Supplemental Retirement Program | 8,561,749 | | LTIP Awards | 28,036,586 | | Insurance/Medical Premiums | 230,575 (sum of LTD, medical/dental, officer life) | | Excise Tax Gross-Up | 22,927,387 | | Total | 86,993,751 |
- Payments upon termination without cause (as of June 30, 2025): Severance pay $453,846; LTIP awards $14,853,314; medical/dental benefits $6,966; total $15,314,126 .
- Retirement scenario (as of June 30, 2025): Stock Incentives $14,549,044; LTIP awards $14,853,314; post-retirement insurance premiums $314,128; total $29,716,486 .
- Officer Life Insurance Plan: CEO death benefit equals 5x base salary during employment and 2x final base after retirement at 65; premiums paid by Company; disability plans target two-thirds of base salary plus prior-year ACIP up to $35,000/month for CEO .
Board Governance
- Board service: Director since 2023; Chairman since 2024; committee assignments: none .
- Dual-role implications: The Board maintains a majority of independent directors; Audit, Corporate Governance and Nominating, and Human Resources & Compensation Committees are entirely independent; Lead Independent Director role exists (James L. Wainscott) to strengthen independent oversight . This structure mitigates independence concerns arising from the CEO + Chairman dual role .
Investment Implications
- Alignment: Very high at-risk mix (target CEO pay ~9% fixed/91% at-risk for program design) with multi-year LTIP keyed to relative revenue/EPS/ROIC vs a defined peer set, producing robust 162.22% payout for 2022–2024 on strong percentile performance; FY2025 ACIP paid 139.09% on above-target operating income and cash flow margin . This supports confidence in execution under The Win Strategy but implies higher realized pay in strong cycles.
- Equity overhang and selling pressure: Significant outstanding SARs (including 32,930 unexercisable at $578.39) and large LTIP tranches scheduled for payout create periodic windows of exercises and share issuance; FY2025 exercises (18,010 shares; $9.06M value) and LTIP vesting ($14.37M) are notable, and continued vesting could be a source of supply near vesting dates .
- Governance red flags: Legacy excise tax gross-up remains for Ms. Parmentier in change-in-control scenarios, resulting in a substantial potential payment ($22.93M), which is shareholder-unfriendly though limited to pre-2016 agreements; anti-hedging/anti-pledging and robust ownership guidelines are positive counterbalances .
- Retention risk: Change-in-control protection with double trigger and 3x cash severance plus accelerated equity reduces unwanted turnover risk in a transaction; absence of a fixed-term employment agreement suggests reliance on programmatic incentives and general severance policy outside change-in-control .
- Trading signals: ACIP/LTIP metric disclosures provide visibility into management scorecard; monitoring FY2026 ACIP changes (individual performance multiplier narrowed to strategic imperatives) may tighten cash bonus sensitivity to M&A and emissions reduction execution .