Eaton Corporation management check

ETN · Industrials · Electrical Components & Equipment · CEO Mr. Ruiz

Filings as of

72
Management score, ranked 152nd of 487Strongest: owner returns. Weakest: stable leadership. See the best and worst run in Industrials →

4 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 $288, against $175 for the peer group the company picked itself.

  • Watch

    Does pay follow performance?

    Pay only loosely tracked returns

    Over 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.26 with shareholder return. 1 means pay moved in step; below 0, the opposite way.

  • Good

    What does the CEO cost owners?

    0.3% of net income

    $14.0m of reported pay in fiscal 2025, against $4.1bn of net income.

  • n/a

    Do they own the stock?

    No recent CEO filing

    Both: 1 buyer ($482k) and 5 sellers ($17.1m) in six months.

  • Good

    Are owners being diluted?

    Share count shrinking

    Diluted shares changed -1.2% a year over the last three fiscal years.

  • Flag

    Is leadership stable?

    2 CEOs in the pay table

    CEOs in the pay table: Mr. Arnold, Mr. Ruiz. 14 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 returns100100%55
Pay for performance6323%86
CEO cost8986%48
Skin in the game——55
Dilution6656%62
Stable leadership158%75
Clean books100100%100

Closest peers

Others in Electrical Components & Equipment, by management score. Eaton Corporation is 27th of 81 in its sector.

  1. 108BEBloom Energy76
  2. 135VRTVertiv73
  3. 152ETNEaton Corporation72
  4. 198EMREmerson Electric69
  5. 208AMEAmetek68
  6. 283ROKRockwell Automation62

Pay versus performance

From the proxy statement filed March 13, 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$36.4m$72.7m20212022202320242025
What $100 becameCompany Peer group
$10020212022202320242025$288
Fiscal yearCEOCEO payActually paidOther executives (avg)$100 becamePeersNet income
2025Mr. Ruiz, Mr. Arnold$14.0m$5.9m$4.7m$288$175$4.1bn
2024Mr. Arnold$22.6m$46.8m$5.4m$389$176$3.8bn
2023Mr. Arnold$20.5m$72.7m$4.3m$279$150$3.2bn
2022Mr. Arnold$14.3m$10.4m$3.9m$178$127$2.5bn
2021Mr. Arnold$19.5m$48.6m$5.7m$192$135$2.1bn

The board says pay is tied most to Adjusted EPS. Its other key measures: Adjusted OCF, Total Shareholder Return.

Insiders and the CEO's stake

Both: 1 buyer ($482k) and 5 sellers ($17.1m) in six months.

  • BoughtGerald JohnsonDirector$482kAug 13, 2026
  • SoldHeath B. MonesmithSee Remarks below.$15.8mAug 11, 2026
  • SoldPeter DenkSee Remarks below.$836kMay 6, 2026
  • SoldAdam A WadeckiSee Remarks below.$231kAug 4, 2026

Leadership and governance on file

Latest shareholder vote results: Apr 23, 2026, including the say-on-pay vote.

Where the money went

Over 2021–2025: $11.8bn returned to owners in buybacks and dividends, 75% of net income, and $0 of pay in stock.

Fiscal year20212022202320242025
Revenue$19.6bn$20.8bn$23.2bn$24.9bn$27.4bn
Net income$2.1bn$2.5bn$3.2bn$3.8bn$4.1bn
Stock-based pay—————
Buybacks$122.0m$286.0m$0$2.5bn$1.9bn
Dividends$1.2bn$1.3bn$1.4bn$1.5bn$1.6bn
Diluted shares402m401m401m399m391m

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.