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David N. Farr was the CEO of Emerson Electric Co. until February 2021, a company known for automation and control solutions. Under his leadership, Farr tied his pay to company performance, making sure his bonuses reflected how well Emerson was...

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David N. Farr

Ex-CEO of Emerson Electric

Education

Not specified

Field of Expertise

Business & Management

Sector of Economy

Industrials

Born

January 1, 1965 - 60 years ago

CEO of Emerson Electric for

16 years 1 month (Jan 2005 - Feb 2021)

Previous Experience

Chief Operating Officer of Emerson Electric Co.

Holdings

See how much did David N. Farr make over time.

During his time at Emerson Electric, Farr's holdings reflected a strategic approach to growing his wealth. At peak moments, such as in 2014, he realized over $16 million from performance shares, which indicated he had a significant portion of his...

Charitable Transactions

EMR

467,874 shares

EMR

Recent Charitable Transactions

EMR

7,040 shares

EMR

Mar 22, 2021

Charity

EMR

8,586 shares

EMR

Sep 28, 2020

Charity

EMR

6,754 shares

EMR

Jun 19, 2020

Charity

EMR

9,868 shares

EMR

Nov 11, 2019

Charity

EMR

13,209 shares

EMR

Feb 11, 2019

Charity

EMR

35,000 shares

EMR

Dec 30, 2016

Charity

Insider Trading

See recent insider trades of David N. Farr.

EMR

7,040 shares

EMR

Mar 22, 2021

Charity

EMR

7,040 shares

EMR

Mar 22, 2021

Charity

EMR

95,150 shares

EMR

Nov 3, 2020

Received

EMR

8,586 shares

EMR

Sep 28, 2020

Charity

EMR

8,586 shares

EMR

Sep 28, 2020

Charity

EMR

6,754 shares

EMR

Jun 19, 2020

Charity

EMR

6,754 shares

EMR

Jun 19, 2020

Charity

EMR

9,868 shares

EMR

Nov 11, 2019

Charity

EMR

9,868 shares

EMR

Nov 11, 2019

Charity

EMR

88,275 shares

EMR

Nov 4, 2019

Received

Compensation History

See how much did David N. Farr make over time.

David N. Farr's compensation package at Emerson Electric was uniquely tied to the company’s performance, a strategic decision that aligned his earnings with the firm's success. In 2021, his total compensation was about $3.5 million, which included a base salary of $928,000 and bonuses linked to Emerson's financial health. Notably, his $2.05 million bonus was based on achieving specific performance metrics. This method of compensation showed his alignment with the company’s long-term goals. Previously, in 2020, Farr's total compensation reached over $16 million, reflecting the success of his strategies during his time as CEO. After retirement, he was guaranteed pension benefits and continued to advise Emerson, receiving consulting fees that included both salary and performance-based incentives. This careful setup indicates how he balanced personal gain with the company's financial objectives.

Year

2021

Total Compensation

$19.71M

Salary

$927.97K

Board Justification

Emerson's compensation philosophy aims to align executive compensation with company performance, focusing on long-term value creation for shareholders. The compensation structure includes a significant portion of performance-based pay to incentivize executives to achieve strategic objectives.

Bonus

$1.88M

Board Justification

Mr. Farr received a 75% pro rata bonus based on the Company’s financial performance for fiscal 2021, subject to final approval of the Company’s Compensation Committee.

Other

$663.83K

Board Justification

Includes consulting fees of $468,000 under a consulting arrangement post-retirement, and other compensation such as perquisites and retirement benefits.

Restricted Stock

$16.24M(166.03K Performance Shares)

Board Justification

Performance shares awarded under the Fiscal 2019-2021 Performance Shares Program vested in 2021. The performance shares were subject to performance goals for the period ending September 30, 2021, and the percentage earned was 101%. Awards were paid out on November 1, 2021.

Performance Metrics

Performance metrics for determining compensation include earnings per share and cumulative free cash flow, benchmarked against global growth targets and relative total shareholder return.

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