MELBOURNE, Australia, Sept. 24, 2020 /PRNewswire/ -- Ingersoll Rand Inc. (NYSE: IR), a global provider of mission-critical flow creation and industrial solutions, celebrated its $150 million equity grant to nearly 16,000 employees worldwide with a virtual ringing of The Opening Bell® at the New York Stock Exchange (NYSE) on September 21.
"This is a $150 million investment in our employees," remarked Vicente Reynal, Chief Executive Officer. "We are not aware of any other industrial company our size having done something like this; it's a meaningful way to build an ownership culture where all employees can benefit from creating value as they all contribute to our success. Our employees have carried us through the beginning of a successful integration between Gardner Denver and the Ingersoll Rand Industrial segment, built a solid foundation and now position us to pivot to growth and achieve great things in the future. United by a common purpose and set of values, we believe our 16,000 employees around the world are unstoppable."
From an hourly assembly worker on the production line in Quincy, Illinois to a sales representative based in Shanghai, China, all eligible employees received a grant equal in value on the grant date to 20% of that employee's annual base cash compensation.*
The grant follows a similar approach Gardner Denver took a few years ago when it gave employees 'skin in the game' in the company through an equity grant. When Gardner Denver returned to the public markets in May 2017, CEO Reynal, along with Chairman Pete Stavros, KKR's Co-Head of Americas Private Equity and current Ingersoll Rand Board Chairman, announced a grant of more than $100 million in deferred stock units to all Gardner Denver employees worldwide. Employees who held on to that equity grant have seen 80% appreciation.**
Over the last decade, Stavros and his team at KKR have pioneered this model of employee ownership in manufacturing companies by granting equity to employees in the industrials companies KKR acquires in the Americas, including Gardner Denver.
"Across our investments in the industrials sector, we have seen firsthand the positive results that occur when you make everyone an owner and afford them the opportunity to participate in the value they help to create," said Stavros. "It's an obvious but often overlooked point: employees are the single most important driver in building stronger companies. Today, we are thrilled to continue to invest in Ingersoll Rand's future by investing in and empowering Ingersoll Rand's employees."
Reynal continued, "If everybody thinks and acts like an owner, we all share in the benefits of any future value creation as the company continues its growth strategy and improves its profitability. Overall, we view this grant as a core strategy for increased employee engagement, an ownership mindset and sustainable long-term shareholder value enhancement."
*All permanent employees in good standing were eligible for the grant except senior management employees who are part of the company's annual long-term incentive plan and employees in Vietnam and Philippines where local laws make granting equity prohibitive. The grant value was calculated using a per share price of $34.63 USD/share, which was the closing price on the grant date of August 20, 2020. |
**Last all-employee grant took place on May 12, 2017 with the grant date share value equal to $20.00 USD/share. 80% return is based off the closing price of Ingersoll Rand Inc. common stock on September 11, 2020 of $35.98. Past performance of IR stock is no guarantee of future results. |
About Ingersoll Rand Inc.
Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our portfolio of products consists of air compressors, pumps, blowers, and systems for fluid management, loading and material handling, power tools as well as the well-known Club Car brand of specialty vehicles. With over 16,000 employees globally, our team develops customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.
Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including, but not limited to, statements regarding the transaction between and integration of Gardner Denver Holdings Inc. and Ingersoll Rand Industrial Segment as well as the potential synergies therefrom and the performance of the combined business; future growth; and share performance, and any assumptions underlying any of the foregoing, are forward-looking statements. These forward-looking statements are based on Ingersoll Rand's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Additional factors that could cause Ingersoll Rand's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" in its most recent annual report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as updated in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, as such factors may be updated from time to time in its periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. The foregoing list of important factors is not exclusive.
Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
