Donald Simmons
Trane TechnologiesAbout Donald Simmons
Donald E. Simmons is Group President, Americas at Trane Technologies, with 24 years at the company spanning leadership across Commercial HVAC and Thermo King businesses . He was promoted to Group President, Americas effective January 4, 2024 . Under his and the leadership team’s tenure, TT delivered 2024 revenue of $19.8B, adjusted EBITDA of $3.8B, and FCF of $2.8B; 3-year CROIC was 32.3% (78th percentile S&P 500 Industrials) and 3-year TSR was 101.96% (84th percentile), driving a 200% PSU payout for the 2022–2024 cycle . TT’s 4-year reported revenue CAGR was 12% and EPS grew >20% each year, per executive remarks in 2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Trane Technologies (Americas) | Group President, Americas | 2024–present | Leads all Americas businesses; focus on Commercial HVAC and Thermo King execution and innovation . |
| Trane Technologies | Leadership roles across Commercial HVAC | ~24 years | Commercial HVAC operating leadership and product/portfolio execution . |
| Thermo King (TT) | Leadership roles | Part of 24-year tenure | Transport refrigeration operations; cycle management and innovation . |
External Roles
No public company directorships or external roles disclosed for Simmons.
Fixed Compensation
| Component | 2024 | Notes |
|---|---|---|
| Base Salary ($) | 700,000 | Increased effective Jan 4, 2024 with promotion to Group President, Americas . |
| AIM Target ($) | 595,000 | AIM target set in Feb 2024. |
| Target Bonus % (AIM Target/Base) | 85.0% (595,000/700,000) | Derived from disclosed AIM target and base salary. |
| Actual AIM Paid ($) | 1,190,000 | 200% of AIM target per 2024 payout . |
| Stock Awards ($, ASC 718) | 1,512,939 | RSUs/PSUs grant-date fair value. |
| Option Awards ($, ASC 718) | 437,534 | 2024 option grant fair value. |
| Change in Pension Value ($) | 842,860 | KMP and supplemental pension changes. |
| All Other Compensation ($) | 155,563 | See breakdown below. |
| Total ($) | 4,838,081 | Sum per SCT. |
All Other Compensation – 2024 breakdown:
- Company retirement contributions: $130,935
- Life/LTD insurance: $3,705
- Executive Health: $4,344
- Financial Planning: $9,000
- Other benefits (incl. spousal travel to Feb 2024 business meeting): $7,579
Performance Compensation
Annual Incentive Matrix (AIM) – 2024
| Metric (Weight) | Threshold ($M) | Target ($M) | Max ($M) | 2024 Adjusted Perf ($M) | Payout Mechanics | Sustainability Modifier | Individual Score | AIM Result |
|---|---|---|---|---|---|---|---|---|
| Enterprise – Revenue (33.3%) | 18,438.5 | 19,008.8 | 19,579.0 | 19,904.1 | 30% at T, 100% at Target, 200% at Max; interpolate | 0% net (no adjustment) | Included in achievement | Enterprise calc 193.02% |
| Enterprise – Adjusted EBITDA (33.3%) | 3,201.1 | 3,556.7 | 3,912.4 | 3,837.9 | Same | Same | Same | Same |
| Enterprise – Cash Flow (33.3%) | 1,851.8 | 2,314.7 | 2,777.7 | 2,791.2 | Same | Same | Same | Same |
| Americas – Revenue (33.3%) | 14,395.0 | 14,840.2 | 15,285.4 | 15,890.0 | Same | Same | Same | Americas calc 195.81% |
| Americas – Adjusted EBITDA (33.3%) | 2,677.9 | 2,975.4 | 3,272.9 | 3,309.8 | Same | Same | Same | Same |
| Americas – Cash Flow (33.3%) | 2,150.9 | 2,688.6 | 3,226.4 | 3,508.8 | Same | Same | Same | Same |
Notes:
- Simmons measured on 60% Enterprise and 40% Americas . HRCC adjustments netted −0.8 ppt to payout for acquisitions (Klinge, Damuth Trane) . Sustainability modifier applied but concluded at 0% for 2024 . Simmons’ AIM achievement was 200% resulting in $1,190,000 payout .
Long-Term Incentives (LTI) – Award mix and vesting
| Instrument | Grant Date | Quantity | Fair Value ($) | Vesting |
|---|---|---|---|---|
| PSUs (2024–2026) – target | 2/6/2024 | 3,238 | 1,075,437 | Earned 0–200% on 3-year relative CROIC and TSR vs S&P 500 Industrials; equal weight; payout at cycle end . |
| RSUs | 2/6/2024 | 1,619 | 437,502 | Time-vest ratably 1/3 per year over 3 years . |
| Stock Options | 2/6/2024 | 5,703 | 437,534 | 10-year term; strike $270.23; vest ratably over 3 years . |
PSU Performance (2022–2024 cycle): CROIC 32.3% (78th percentile) and TSR 101.96% (84th percentile) each paid at 200%, yielding a 200% total PSU payout .
Equity Ownership & Alignment
| Ownership item | Value |
|---|---|
| Ordinary shares beneficially owned | 13,517 |
| Options exercisable within 60 days | 26,163 |
| Notional shares (EDCP/DDCP) | — (none disclosed) |
| Unvested RSUs (as of 12/31/2024) | 1,619 |
| Unearned/target PSUs outstanding | 3,238 |
| Unexercisable options outstanding | 5,703 (2024 grant) |
| Ownership as % of shares outstanding | ~0.006% (13,517 / 223,175,933) |
| Stock ownership guideline | 3× base salary for Group Presidents; average actual multiple 10.1×; all NEOs met requirements as of record date . |
| Hedging/pledging policy | Hedging, margin accounts, and pledging prohibited for directors and executive officers . |
Insider trading plan:
- Adopted Rule 10b5-1 plan on Aug 5, 2025 to sell up to 17,366 shares through May 31, 2026; includes 3,326 PSUs assumed at 100% target vesting (actual 0–200%) . This indicates potential scheduled selling pressure tied to vesting and liquidity planning .
Employment Terms
| Provision | Key terms |
|---|---|
| Severance (no change-in-control) | TT generally provides up to 12 months’ base salary for NEOs terminated without cause; Simmons eligible per guidelines . Illustrative “involuntary without cause” table shows $700,000 severance for Simmons . |
| Change-in-control (CIC) | Double-trigger; Simmons receives 2×(base salary + AIM target/avg) plus unpaid bonus, pro-rated current year bonus, unused vacation, health benefits for 2 years, outplacement up to $100,000, and pension/KMP enhancements; time-based awards vest only if not assumed; PSUs vest prorated at target or actual per HRCC . |
| Major Restructuring Severance Plan | If termination substantially related to a “Major Restructuring”: 2×(current base + current AIM target); Simmons value as of 12/31/2024 was $2,590,000 . |
| Post-employment benefits table (CIC scenario) | Total potential under CIC (illustrative 12/31/2024): $13,423,673 for Simmons (includes severance, earned awards, equity value, enhanced retirement, health, outplacement) . |
| Clawback policy | SEC/NYSE-compliant recovery of excess incentive-based comp upon restatement; HRCC can recover from other employees for reputational/financial harm; exceptions per rule . |
Non-compete / non-solicit / garden leave: Not disclosed.
Deferred Compensation & Pension
| Plan | 2024 Activity | Balance |
|---|---|---|
| EDCP (exec deferred comp) | No executive contributions disclosed for Simmons; — | — |
| Supplemental ESP (nonqualified DC) | Registrant contributions $103,335; aggregate earnings $529,614 | $1,737,321 (aggregate balance) |
| Pension Plan | Years credited | Present value ($) |
|---|---|---|
| Pension Plan | 20.25 years | 189,072 |
| Supplemental Pension Plan II | 20.25 years | 487,677 |
| KMP (Supplemental Exec Retirement) | 23.67 years | 3,440,943 |
Performance & Track Record
- TT enterprise 2024 performance: revenue $19.8B (+12% y/y), adjusted EBITDA $3.8B (+21%), FCF $2.8B (+29.7%) .
- 3-year CROIC 32.3% (78th percentile) and TSR 101.96% (84th percentile) vs S&P 500 Industrials; PSUs paid at 200% .
- Management cited 4-year revenue CAGR of 12% and sustained 20%+ EPS growth; FCF averaged 108% of net income over 4 years .
- Americas segment commentary: resilient execution in Transport refrigeration through downcycles and innovation pipeline; BrainBox AI integration driving energy savings up to 25% and services TAM expansion .
Compensation Structure Analysis
- High at-risk pay: 82%+ of non-CEO NEO TDC performance-based (TT policy); Simmons’ 2024 AIM paid at 200% and significant LTI exposure to relative CROIC/TSR .
- Mix shift: Balanced RSUs/options for retention/performance; options at-market, 10-year term; RSUs 3-year ratable vest .
- Governance: No single-trigger cash or time-based vesting on CIC; no option re-pricing; robust clawback; no hedging/pledging; no tax gross-ups for CIC .
- Peer benchmarking: 2025 compensation peer group includes Carrier, Eaton, Parker-Hannifin, Honeywell, JCI, etc. TT positioned ~79th percentile market cap and 57th percentile revenue vs peers at YE 2024 .
Equity Ownership & Alignment
- Ownership guideline 3× salary; TT states all NEOs met requirements as of record date .
- Beneficial ownership: 13,517 shares; 26,163 options exercisable within 60 days; unvested RSUs 1,619; target PSUs 3,238 .
- Anti-hedging and no pledging policy enhances alignment .
- 10b5-1 plan adopted Aug 2025 to sell up to 17,366 shares through May 2026, partly tied to vesting PSUs—not necessarily discretionary selling; still indicates potential supply .
Employment Terms
| Topic | Terms |
|---|---|
| Severance (no CIC) | Generally up to 12 months base; Simmons example $700,000 . |
| CIC economics | Double-trigger; 2× salary+bonus for Simmons; equity vesting and benefit enhancements per plan; health benefits 2 years; outplacement $100k . |
| Major Restructuring | 2× salary+target AIM; Simmons value $2,590,000 (as of 12/31/2024) . |
Investment Implications
- Alignment: Strong pay-for-performance mechanics tied to revenue, EBITDA, cash flow, and 3-year relative CROIC/TSR; ownership requirements met; anti-hedging/pledging reduces misalignment risk .
- Retention: Balanced RSU/option mix with 3-year vesting supports retention; CIC provisions are double-trigger, tempering immediate departure risk while offering competitive protection .
- Selling pressure: The Aug 2025 10b5-1 plan scheduling up to 17,366 shares (including PSUs) suggests potential supply near vest dates through May 2026; monitor execution rates and incremental plan adoptions .
- Execution risk: Americas leadership exposure to cyclicality (transport refrigeration downcycle) balanced by innovation (BrainBox AI, ARIA, in-region capacity investments) and service-led energy savings value propositions .
Citations:
Background/tenure: **[1466258_TT_3429737_0]**; Promotion: **[1466258_0001466258-25-000114_tt-20250423.htm:50]**; Performance metrics & payouts: **[1466258_0001466258-25-000114_tt-20250423.htm:42]** **[1466258_0001466258-25-000114_tt-20250423.htm:56]**; AIM structure/results: **[1466258_0001466258-25-000114_tt-20250423.htm:51]** **[1466258_0001466258-25-000114_tt-20250423.htm:52]** **[1466258_0001466258-25-000114_tt-20250423.htm:53]** **[1466258_0001466258-25-000114_tt-20250423.htm:54]**; LTI terms: **[1466258_0001466258-25-000114_tt-20250423.htm:49]** **[1466258_0001466258-25-000114_tt-20250423.htm:55]** **[1466258_0001466258-25-000114_tt-20250423.htm:61]**; Grants: **[1466258_0001466258-25-000114_tt-20250423.htm:68]**; Ownership: **[1466258_0001466258-25-000114_tt-20250423.htm:71]** **[1466258_0001466258-25-000114_tt-20250423.htm:94]** **[1466258_0001466258-25-000114_tt-20250423.htm:91]**; Guidelines: **[1466258_0001466258-25-000114_tt-20250423.htm:63]**; Hedging/pledging policy: **[1466258_0001466258-25-000114_tt-20250423.htm:33]**; Clawback: **[1466258_0001466258-25-000114_tt-20250423.htm:62]**; Severance/CIC/Major Restructuring: **[1466258_0001466258-25-000114_tt-20250423.htm:80]** **[1466258_0001466258-25-000114_tt-20250423.htm:81]** **[1466258_0001466258-25-000114_tt-20250423.htm:82]** **[1466258_0001466258-25-000114_tt-20250423.htm:83]** **[1466258_0001466258-25-000114_tt-20250423.htm:84]**; Deferred comp/pension: **[1466258_0001466258-25-000114_tt-20250423.htm:78]** **[1466258_0001466258-25-000114_tt-20250423.htm:75]**; 10b5-1 plan: **[1466258_0001628280-25-047439_tt-20250930.htm:52]**; Strategy commentary: **[1466258_TT_3429737_7]** **[1466258_TT_3429737_15]** **[1466258_TT_3429737_5]**; 4-year growth remarks: **[1466258_TT_3429737_0]**.