Patrick M. Scott

About Patrick M. Scott

Patrick M. Scott is Vice President and President – Fluid Connectors Group at Parker-Hannifin (PH), and has served as a Section 16 executive officer since 2024; age 47 as of August 15, 2025 . The company delivered record FY2025 performance, including 23.0% segment operating margin, $3.8B cash from operations (19% of sales), and $27.12 EPS, underpinning strong TSR over 5 years . PH’s executive pay program is explicitly pay-for-performance: FY2025 annual cash incentive paid at 139.09% of target based on segment operating income, sales revenue, and cash flow margin, and LTIP performance awards paid at 162.22% of target on revenue growth, EPS growth, and ROIC vs. peers .

Past Roles

External Roles

• No external public company directorships disclosed for Scott .

Fixed Compensation

Performance Compensation

Annual Cash Incentive (Officer ACIP) – FY2025 payout mechanics

Long-Term Incentive Performance (LTIP) – FY2025 grants and plan

Stock Incentives (SARs/Options) – FY2025 grants

Equity Ownership & Alignment

Stock ownership guidelines: “Other Executive Officers” must hold 2× base salary in PH shares, with a recommended 5-year compliance period; all executives in role ≥5 years were compliant as of 6/30/2025 . Anti-hedging and anti-pledging policies apply to Directors and executive officers .

Employment Terms

• No employment agreements; executives covered by Change-in-Control Severance Agreements (double-trigger) .
• Clawback policies: NYSE/SEC-compliant Section 16 officer clawback adopted Dec 1, 2023; prior policy remains applicable pre-10/2/2023 . LTIP and RSU award agreements incorporate clawbacks .

Potential Payments – Termination Scenarios (as of 6/30/2025)

Payments upon termination without cause (lump sum and benefits if release executed):

Payments upon retirement:

Payments upon long-term disability:

Payments upon a qualifying termination in connection with a Change in Control (double-trigger):

Deferred Compensation and Benefits (FY2025)

FY2025 Total Compensation (Summary Compensation Table extract)

All Other Compensation components:

Compensation Structure vs. Performance Metrics

• ACIP metrics emphasize segment operating income (40%), sales revenue (20%), and cash flow margin (40%) with threshold/target/max calibrations and straight-line interpolation; FY2025 payout at 139.09% reflected above-target segment operating income and cash flow margin, with sales slightly below target .
• LTIP awards (performance RSUs) use peer-relative revenue growth, EPS growth, and ROIC (40/40/20) over 3-year periods, with payouts 0–200% based on percentile ranks (≤25th to ≥75th), subject to Committee negative discretion and threshold company-level ROAE or FCF margin of ≥4% .

Policies and governance:

• One-year minimum vesting/performance periods for equity incentives under 2023 Omnibus Plan; anti-hedging/anti-pledging policy; robust ownership guidelines and clawback implementation (NYSE/SEC-aligned) .

Say-on-Pay and peer group:

• 2024 Say-on-Pay approval ~89% of votes cast .
• Peer group for FY2025 compensation benchmarking includes diversified industrials (e.g., 3M, Caterpillar, Cummins, Deere, Eaton, Emerson, Fortive, Honeywell, ITW, Ingersoll Rand, ITT, JCI, Moog, RTX, Rockwell Automation, Textron, Trane) .

Investment Implications

• Strong alignment: Majority of Scott’s compensation is performance-linked (ACIP and LTIP) with clear metrics and peer-relative LTIP, and anti-pledging/hedging rules mitigate misalignment risk .
• Vesting/overhang: Stock incentives vest 1/3 annually over ~3 years and LTIP is cliff after 3 years—expect periodic vesting supply and a larger event at LTIP payout; FY2025 outstanding/exercisable incentives indicate near-term exercisable exposure (6,482 shares within 60 days) .
• Retention/CIC economics: Double-trigger CIC agreement with 3× salary+bonus plus equity acceleration (total $10.43M for Scott at 6/30/2025) supports retention but creates potential CIC cost overhang; no excise tax gross-up for Scott reduces shareholder-unfriendly optics vs. some peers .
• Ownership and guidelines: Beneficial ownership is modest vs. shares outstanding, but 2× salary guideline and 5-year compliance window apply; all officers ≥5 years in role were compliant as of 6/30/2025, implying time-based path to guideline for newer officers .