Ingersoll Rand CEO Describes Employee Ownership Plan and Enterprise Value Growth

Ingersoll Rand CEO Vicente Reynal stated that a broad-based employee ownership plan contributed to the company's growth. The plan was introduced in 2017 at Gardner Denver, the company Reynal led at the time, with support from its largest shareholder, KKR. Over 21,000 employees received equity under the plan.

Reynal reported that the ownership plan aligned incentives between management and employees. He described early career experiences as an hourly supervisor in an aerospace factory, where he observed a gap between business strategies and employee outcomes. Efficiency improvements benefited the company but often reduced overtime hours and pay for workers.

In 2017, Reynal instituted the shared ownership plan at Gardner Denver, extending it to employees from manufacturing to the front office. , a provider of flow creation and industrial technologies. The company now employs 21,700 people globally.

Reynal stated that the ownership mindset led to increased employee engagement. Since 2017, enterprise value has grown more than eight times. Attrition rates have decreased, safety performance exceeds industry standards, and employee engagement scores reached the 90th percentile.

Employees participate in town halls discussing capital allocation and strategy, according to Reynal. Supply chain teams contribute to resilience planning, and workers connect their actions to value creation. Reynal reported examples such as employees making extra sales calls, improving factory throughput, and resolving customer issues.

In one instance, an employee identified a method to produce a critical part on-site, reducing labor, turnaround time, and waste. Sales teams inform customers that service technicians are owners, which affects service quality perceptions. The plan has enabled employees to use equity for personal needs, including paying off mortgages, funding education, and medical care.

, employees have expressed pride in owning part of an American company. Reynal addressed concerns about the complexity of such plans in global companies, stating that with leadership commitment, the approach has proven effective. The ownership plan continues to influence company culture and operations at Ingersoll Rand.