QUINCY – A decision by Ingersoll Rand to invest in its workforce while pushing to double the size of the company in five years means employees at the Gardner Denver facility here will see a significant boost in their personal wealth.
Ingersoll Rand, which merged with Gardner Denver this year, announced last week that the company is awarding equity grants to every employee in the company, meaning all eligible employees will receive a grant equal in value to 20% of that employee's annual base cash compensation.
"This is a $150 million investment in our employees," CEO Vicente Reynal said in a statement released earlier this week. "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."
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, Reynal, along with 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, the company's release said.
"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," Stavros said in the statement. "It's an obvious but often overlooked point: employees are the single most important driver in building stronger companies."
Gary Gillespie, the company's vice president and general manager for the industrial technologies and services business segment for the Americas, is based out of the Quincy facility, and he believes the grant is an example of the company backing up its commitment to its employees.
"One of the company's core values is encouraging employees to think and act like owners," Gillespie told The Herald-Whig last week. "So, you know, from that perspective the grand is really a way of bringing that to life. You know we're creating an ownership mindset, that's really the cornerstone of our strategy as a company."
Gillespie also said the grants show an investment in the company's future in Quincy.
"Our employees (in Quincy) produce some of the best results in the whole corporation," Gillespie said. "So I'm really encouraged about our potential for the future."
Gillespie said the Quincy facility employs about 300 people, but the company declined to release a total amount of grant money being awarded to Quincy employees.
CORRECTION: A previous version of this story incorrectly stated when Gardner Denver merged with Ingersoll Rand.