Cummins management check

CMI · Industrials · Construction Machinery & Heavy Transportation Equipment · CEO Jennifer W. Rumsey

Filings as of

73
Management score, ranked 133rd of 487Strongest: stable leadership. Weakest: CEO cost. See the best and worst run in Industrials →

5 good · 1 to watch · 1 flagged, across the seven questions below.

  • Good

    Have owners done well?

    Beat its chosen peers

    $100 invested at the start of fiscal 2021 grew to $254, against $208 for the peer group the company picked itself.

  • Good

    Does pay follow performance?

    Pay rose and fell with returns

    Over 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.89 with shareholder return. 1 means pay moved in step; below 0, the opposite way.

  • Flag

    What does the CEO cost owners?

    700159.4% of net income

    $19.9m of reported pay in fiscal 2025, against $3k of net income.

  • Watch

    Do they own the stock?

    Insiders are selling

    8 insiders sold $10.2m in the last six months and none bought.

  • Good

    Are owners being diluted?

    Share count shrinking

    Diluted shares changed -1.4% a year over the last three fiscal years. Stock-based pay was 0.3% of revenue in the latest year.

  • Good

    Is leadership stable?

    4 leadership filings in 3 years

    CEO in the pay table: Jennifer W. Rumsey. 4 filings under 8-K item 5.02 (officers or directors leaving or joining, or new pay arrangements) in the last 3 years.

  • Good

    Are the books clean?

    No red flags on file

    No restatements, auditor changes or late filings since 2021.

Against the S&P 500

Each check's score (0–100) and how it compares: the share of ranked S&P 500 companies it matches or beats, and the median in Industrials.

CheckScoreAt or aboveSector median
Owner returns7871%55
Pay for performance9582%86
CEO cost016%48
Skin in the game——55
Dilution6858%62
Stable leadership100100%75
Clean books100100%100

Closest peers

Others in Construction Machinery & Heavy Transportation Equipment, by management score. Cummins is 21st of 81 in its sector.

  1. 12CATCaterpillar Inc.87
  2. 129WABWabtec74
  3. 133CMICummins73
  4. 134PWRQuanta Services73
  5. 135VRTVertiv73
  6. 328PCARPaccar59

Pay versus performance

From the proxy statement filed April 2, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.

CEO pay by fiscal yearAs reported Actually paid
$0$18.7m$37.3m20212022202320242025
What $100 becameCompany Peer group
$10020212022202320242025$254
Fiscal yearCEOCEO payActually paidOther executives (avg)$100 becamePeersNet income
2025Jennifer W. Rumsey$19.9m$37.3m$6.1m$254$208$3k
2024—$21.9m$32.7m$7.9m$170$176$4k
2023—$12.8m$12.8m$4.7m$114$150$735
2022—$11.5m$8.9m$3.2m$112$125$2k
2021—$15.6m$17.3m$5.6m$98$118$2k

The board says pay is tied most to EBITDA. Its other key measures: ROIC, Operating Cash Flow.

Insiders and the CEO's stake

8 insiders sold $10.2m in the last six months and none bought.

  • SoldJennifer Mary BushVP & Pres. - Power Systems$3.5mMay 12, 2026
  • SoldMarvin BoakyeVP - CHRO$2.4mMay 8, 2026
  • SoldNicole Lamb-HaleVP, CAO & Corporate Secretary$1.7mMay 8, 2026
  • SoldBonnie J FetchEVP & President - Operations$908kMay 11, 2026

Leadership and governance on file

Latest shareholder vote results: May 14, 2026, including the say-on-pay vote.

Where the money went

Over 2021–2025: $6.4bn returned to owners in buybacks and dividends, and $342.0m of pay in stock.

Fiscal year20212022202320242025
Revenue$24.0bn$28.1bn$34.1bn$34.1bn$33.7bn
Net income—————
Stock-based pay$37.0m$33.0m$79.0m$100.0m$93.0m
Buybacks$1.4bn$374.0m$0$0—
Dividends$809.0m$855.0m$921.0m$969.0m$1.1bn
Diluted shares146m142m143m139m139m

Educational only, not investment advice. Figures are as filed with the SEC: pay from the proxy's pay-versus-performance table, capital allocation from 10-K XBRL data, insider trades from Form 4s over the last six months, events from the last 5 years of filings. The peer group is the one the company chose. See the method.