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Emerson Electric Co. (NYSE:EMR) announced Thursday that its board’s Compensation Committee approved special performance-based stock option awards for President and Chief Executive Officer Lal Karsanbhai and Executive Vice President and Chief Operating Officer Ram Krishnan.
According to a press release statement included in the company’s filing with the Securities and Exchange Commission, each executive received a grant of 350,000 stock options. The options are divided into five equal tranches of 70,000 shares each, with exercise prices set at $128.46, $160.575, $192.69, $224.805, and $256.92 per share. The first tranche’s exercise price matches the closing price of Emerson’s common stock on the New York Stock Exchange on the grant date, with subsequent tranches set at premiums of 25%, 50%, 75%, and 100% above that price.
The awards were approved on Wednesday. Each tranche vests pro rata over five years, with 14,000 options at each exercise price vesting annually on the anniversary of the grant date. The options generally require continued employment through the vesting dates and must be exercised within ten years from the grant date.
The options are subject to accelerated vesting in the event of death, disability, or upon a “double-trigger” change in control as defined in Emerson’s 2024 Equity Incentive Plan. The awards also include confidentiality, non-competition, and non-solicitation obligations.
The company stated that the awards aim to incentivize and support the continued success of its repositioned portfolio and align executive compensation with long-term shareholder value. The performance-based structure requires significant appreciation in Emerson’s stock price for the executives to realize the full value of the awards.
This information is based on a press release statement included in Emerson Electric’s recent SEC filing.
In other recent news, Emerson Electric reported its fourth-quarter 2025 earnings, showing mixed results. The company met expectations with an earnings per share (EPS) of $1.62, aligning with analysts’ forecasts. However, revenue did not meet expectations, totaling $4.86 billion compared to the projected $4.9 billion. This revenue shortfall was a significant development for investors. The results have caught the attention of market analysts and investors alike. Despite the earnings match, the revenue miss has been a focal point in recent discussions. These developments are part of the latest updates concerning Emerson Electric.
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