Jerrald Morton
REGAL REXNORDAbout Jerrald Morton
Executive Vice President & President, Industrial Powertrain Solutions (IPS) at Regal Rexnord (RRX). Joined RRX in February 2015; previously spent 28 years at Emerson in Quality, Technology, and Operations, serving as Vice President, Global Operations for Emerson’s power transmission business at the time RRX acquired that business; age 63 in FY 2024 . Roles at RRX include President – Integration (Motion Control Solutions) in 2021–2023 and leadership of the former Power Transmission Solutions segment; elevated to IPS President following RRX’s Altra acquisition in March 2023, indicating deep integration and operations expertise . Company performance context under his tenure: FY 2023 reported sales up 19.8% (organic −8%), adjusted EBITDA margin 20.9%, adjusted FCF $683.1M, adjusted EPS $9.15, with strong say‑on‑pay support (>94%) ; FY 2024 revenue $6.03B, adjusted EBITDA margin 22.1%, adjusted FCF $511.8M, adjusted EPS $9.12; paid down $938M debt and delivered $101M synergies . TSR benchmarks (company level, pay‑vs‑performance): value of $100 investment at year‑end 2024 $200.14 vs S&P 400 Industrials $197.51 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Regal Rexnord | Executive Vice President & President, Industrial Powertrain Solutions | 2023–present | Led IPS following Altra acquisition integration, overseeing segment operations and performance . |
| Regal Rexnord | President – Integration, Motion Control Solutions | 2021–2023 | Led integration of Motion Control Solutions and associated business units, aligning segment strategy and operations . |
| Regal Rexnord | President, Power Transmission Solutions Segment | 2019–2021 | Drove segment strategy and execution across power transmission portfolio . |
| Regal Rexnord | Vice President, Business Leader, Power Transmission Solutions | 2017–2019 | Led business operations and growth initiatives for PTS . |
| Regal Rexnord | Led global operations for power transmission business | 2015–2017 | Built operational excellence across global footprint post‑acquisition . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Emerson Electric | Vice President, Global Operations (Power Transmission) | 28 years (pre‑2015) | Scaled global operations; industry‑leading manufacturing and supply chain capabilities transitioned into RRX via acquisition . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $468,936 | $484,995 | $541,344 |
| Target Bonus (% of Base) | 70% | — | — |
| Actual Bonus Paid (Non‑Equity Incentive, $) | $316,786 | $352,035 | $493,829 |
| All Other Compensation ($) | $259,775 | $103,821 | $68,799 |
Perquisites detail (2024): Company car $9,029; life insurance premiums $1,872; 401(k) contribution $13,800; SRP contribution $39,676; executive physical $4,422 .
Performance Compensation
2024 Annual Incentive (ICP) – Total Company Portion (40% of Morton’s payout)
| Metric | Weight | Target | Actual | Payout | Vesting/Payment |
|---|---|---|---|---|---|
| Adjusted EPS | 45% | Not disclosed | $9.12 | 1.8% | Cash paid post‑year |
| Adjusted Free Cash Flow Conversion | 45% | Not disclosed | 105.5% after negative discretion | 69.9% | Cash paid post‑year |
| Total Company Policy Deployment | 10% | Not disclosed | Not disclosed | 15.6% | Cash paid post‑year |
| Total Company Payout (used for 40% of Morton) | 100% | — | — | 87.3% | Cash |
Structure: Segment presidents’ ICP is 40% based on total company metrics; remaining 60% on segment‑level measures and policy deployment tailored to segment objectives .
2023 Annual Incentive (ICP) – Segment Results (60% of Morton’s payout)
First Performance Period (MCS and Industrial Systems):
| Segment Metric | Weight (Morton) | Target | Actual | Payout % |
|---|---|---|---|---|
| Adjusted Free Cash Flow (% of adjusted net income) | 21% | 100% | 478% | 70.0% |
| MCS & Industrial Systems Adjusted EBITDA ($ in millions) | 27% | $342.9 | $316.4 | 17.0% |
| MCS Policy Deployment | 10.8% | Not disclosed | Not disclosed | 21.8% |
| Industrial Systems Policy Deployment | 1.2% | Not disclosed | Not disclosed | 0.0% |
| First Period Subtotal | 60% | — | — | 108.8% |
Second Performance Period (Industrial Systems, IPS, and MCS):
| Segment Metric | Weight (Morton) | Target | Actual | Payout % |
|---|---|---|---|---|
| Industrial Systems Adjusted EBITDA ($ in millions) | 2.7% | Not disclosed | $21.7 | 0.0% |
| Industrial Systems DIO | 2.1% | Not disclosed | 177.9 | 0.0% |
| IPS Adjusted EBITDA ($ in millions) | 24.3% | Not disclosed | $281.9 | 0.0% |
| IPS DIO | 18.9% | Not disclosed | 106.8 | 4.2% |
| MCS Policy Deployment | 10.8% | Not disclosed | Not disclosed | 23.7% |
| Second Period Subtotal | 60% | — | — | 27.9% |
2022 ICP – Segment results summary: Weighted payout across MCS, Automation Solutions, and Industrial Systems yielded Morton segment subtotal 87.3% .
PSU Payouts (Performance Share Units – FY 2022–2024 cycle)
| PSU Metric | Weighting | Achievement | Payout |
|---|---|---|---|
| Total Shareholder Return (relative) | Not disclosed | 0% | 0% |
| Return on Invested Capital | Not disclosed | 179% | 179% |
| Overall PSU Payout | — | — | 90% of target |
Equity Grant Mix and Vesting
- RSUs generally vest 34% on first anniversary, 67% on second, 100% on third anniversary of grant; SARs typically vest on the same 34/67/100 cadence; selected grants vest on specified dates (e.g., options vesting 2/16/2024) .
- 2024 stock vested for Morton: 6,417 shares vested; value realized $1,001,854 (2023 fiscal year activity) .
Equity Ownership & Alignment
| As of Date | Beneficial Ownership (shares) | RSUs (unvested units) | Options Exercisable within 60 days |
|---|---|---|---|
| Mar 3, 2023 | 38,288 | 4,400 | 26,557 |
| Mar 1, 2024 | 40,421 | 4,242 | 25,676 |
| Mar 10, 2025 | 49,356 | 6,113 | 31,504 |
Additional alignment and retention facts:
- Outstanding awards at FY 2023 year‑end: Unvested stock awards 3,814 units (market value $568,362), unearned PSUs 6,016 (market/payout value $890,488) .
- Outstanding awards at FY 2024 year‑end: Unvested stock awards 3,644 units (market value $565,298), unearned PSUs 7,676 (market/payout value $1,190,732) .
- Company prohibits hedging and pledging, maintains stock ownership requirements, and enforces a clawback policy .
Employment Terms
Change‑in‑control (CIC) and termination economics (2025 Proxy):
| Component | Voluntary Termination | Involuntary Termination (not CIC) | For Cause | CIC without Termination | Involuntary or Good Reason Termination with CIC | Death or Disability |
|---|---|---|---|---|---|---|
| Current Year ICP Cash Incentive | — | $493,829 | — | $493,829 | $493,829 | $493,829 |
| Termination Payment | — | $991,890 | — | $2,127,530 | — | — |
| RSUs – Unvested Accelerated | — | — | — | $555,602 | $555,602 | $555,602 |
| SARs – Unvested Accelerated | — | — | — | $3,144 | $3,144 | $3,144 |
| PSUs – Unvested Accelerated | — | — | — | $1,517,395 | $1,517,395 | $1,517,395 |
| Post‑termination Health & Life Insurance | — | — | — | $35,795 | — | — |
| Accrued Vacation Pay | $42,388 | $42,388 | $42,388 | — | $42,388 | $42,388 |
| Outplacement | — | — | — | $55,105 | — | — |
| Accounting/Legal | — | — | — | $15,000 | — | — |
| Disability Proceeds | — | — | — | — | — | $120,000 |
| Total | $42,388 | $1,528,107 | $42,388 | $4,845,788 | $2,732,358 | See note (5) |
Policy features:
- No tax gross‑ups; “best net” 280G approach to reduce or pay benefits to maximize after‑tax outcome .
- No “single trigger” severance; clawback policy; hedging/pledging prohibited .
Retirement and deferred compensation:
- Defined benefit Regal Pension Plan participation; credited service up to 29 years; present value of accumulated benefit $387,329 (2023); Plan frozen effective Feb 1, 2020 .
- Supplemental Retirement Plan (SRP) company contribution percentages for executives first eligible in 2020 or later (Morton): 4% for 0–5 years, 6% for 6–10 years, 9% for 11+ years of officer service; 2024 company SRP contribution to Morton $39,676 .
Investment Implications
- Pay‑for‑performance alignment: Morton’s 2024 ICP payout was reduced via negative discretion tied to below‑target EPS, while FCF conversion and policy deployment exceeded targets; PSUs paid at 90% with 0% TSR but strong ROIC (179%), signaling emphasis on cash discipline and capital efficiency over stock beta factors .
- Retention and selling pressure: Material unvested RSUs/PSUs persist into FY 2024 (3,644 RSUs; 7,676 PSUs), plus option overhang across 2027–2034 expirations; accelerated vesting on CIC suggests moderate retention hooks; no hedging/pledging permitted reduces misalignment risk .
- Ownership alignment: Beneficial holdings increased from 38,288 (2023) to 49,356 (2025), while exercisable options rose to 31,504 by March 2025, indicating higher personal exposure to equity outcomes; still under 1% of shares outstanding, consistent with peer norms .
- Change‑in‑control economics: Double‑trigger CIC yields ~$2.73M, including accelerated equity, but absence of gross‑ups and use of “best net” mitigates shareholder dilution concerns; severance multiples implied by termination payments are measured and consistent with mid‑cap industrial norms .
- Execution track record: Operational integration of Altra and leadership of IPS under challenging macro backdrops, with company‑level metrics showing resilient FCF and margin performance (FY 2024 adj. EBITDA margin 22.1%, adj. FCF $511.8M) support confidence in operational execution, though TSR component underperformed PSU hurdle in the last cycle .