Emerson Electric management check
EMR · Industrials · Electrical Components & Equipment · CEO S. L. Karsanbhai
Filings as of
6 good · 1 to watch · 0 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 $226, against $218 for the peer group the company picked itself.
- Good
Does pay follow performance?
Pay rose and fell with returnsOver 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.84 with shareholder return. 1 means pay moved in step; below 0, the opposite way.
- Good
What does the CEO cost owners?
0.9% of net income$21.2m of reported pay in fiscal 2025, against $2.3bn of net income.
- Watch
Do they own the stock?
CEO stake ≈ 2.1 years of payThe CEO holds 271,743.033 shares, directly or through trusts (unvested awards not counted): about 2.1 years of pay. 3 insiders sold $4.4m in the last six months and none bought.
- Good
Are owners being diluted?
Share count shrinkingDiluted shares changed -0.9% a year over the last three fiscal years. Stock-based pay was 1.5% of revenue in the latest year.
- Good
Is leadership stable?
7 leadership filings in 3 yearsCEO in the pay table: S. L. Karsanbhai. 7 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 fileNo 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.
| Check | Score | At or above | Sector median |
|---|---|---|---|
| Owner returns | 55 | 55 | |
| Pay for performance | 92 | 86 | |
| CEO cost | 53 | 48 | |
| Skin in the game | 31 | 55 | |
| Dilution | 62 | 62 | |
| Stable leadership | 90 | 75 | |
| Clean books | 100 | 100 |
Closest peers
Others in Electrical Components & Equipment, by management score. Emerson Electric is 38th of 81 in its sector.
- 108BEBloom Energy76
- 135VRTVertiv73
- 152ETNEaton Corporation72
- 198EMREmerson Electric69
- 208AMEAmetek68
- 283ROKRockwell Automation62
Pay versus performance
From the proxy statement filed December 12, 2025. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.
| Fiscal year | CEO | CEO pay | Actually paid | Other executives (avg) | $100 became | Peers | Net income |
|---|---|---|---|---|---|---|---|
| 2025 | S. L. Karsanbhai | $21.2m | $37.1m | $5.7m | $226 | $218 | $2.3bn |
| 2024 | — | $20.1m | $28.4m | $5.9m | $185 | $211 | $2.0bn |
| 2023 | — | $18.3m | $29.2m | $4.8m | $160 | $146 | $13.2bn |
| 2022 | — | $15.2m | $8.2m | $5.3m | $119 | $114 | $3.2bn |
| 2021 | — | $15.8m | $30.1m | $5.5m | $149 | $135 | $2.3bn |
The board says pay is tied most to Adjusted EPS. Its other key measures: Cumulative free cash flow, Operating cash flow.
Insiders and the CEO's stake
Surendralal Lanca Karsanbhai (President & CEO) held 271,743.033 shares directly after their latest Form 4 on Aug 11, 2026, roughly $44.0m at that filing's price.
3 insiders sold $4.4m in the last six months and none bought.
- SoldRam R. KrishnanExecutive Vice Pres & COO$1.6mJun 1, 2026
- SoldSurendralal Lanca KarsanbhaiPresident & CEO$1.6mAug 11, 2026
- SoldMichael H. TrainSVP & Chief Sustain Officer$1.2mAug 6, 2026
Leadership and governance on file
- May 5, 2026Leadership change8-K 5.02
- Nov 14, 2025Leadership change8-K 5.02
- Mar 12, 2025Leadership change8-K 5.02
- Nov 5, 2024Leadership change8-K 5.02
- May 8, 2024Leadership change8-K 5.02
- Feb 9, 2024Leadership change8-K 5.02
- Nov 30, 2023Leadership change8-K 5.02
- May 3, 2023Leadership change8-K 5.02
- May 2, 2023Leadership change8-K 5.02
- Feb 10, 2023Leadership change8-K 5.02
- Nov 28, 2022Leadership change8-K 5.02
Latest shareholder vote results: Feb 6, 2026, including the say-on-pay vote.
Where the money went
Over 2021–2025: $10.6bn returned to owners in buybacks and dividends, 46% of net income, and $1.1bn of pay in stock.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $12.9bn | $13.8bn | $15.2bn | $17.5bn | $18.0bn |
| Net income | $2.3bn | $3.2bn | $13.2bn | $2.0bn | $2.3bn |
| Stock-based pay | $197.0m | $125.0m | $250.0m | $260.0m | $263.0m |
| Buybacks | $500.0m | $500.0m | $2.0bn | $435.0m | $1.2bn |
| Dividends | $1.2bn | $1.2bn | $1.2bn | $1.2bn | $1.2bn |
| Diluted shares | 602m | 596m | 577m | 574m | 567m |
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.