Stanley Black & Decker CEO Donald Allan Jr. will receive a multimillion-dollar compensation package as part of his agreement to transition into a role as executive chairman of the company’s board of directors.
Stanley Black & Decker CEO Donald Allan Jr. will receive a multimillion-dollar compensation package as part of his agreement to transition into a role as executive chairman of the company’s board of directors before he retires late next year.
Allan will step away from his role as CEO and become executive chairman on Oct. 1, until his retirement on Oct. 1, 2026. During that yearlong period, he will receive a base salary of $1.1 million.
Further, he will receive a bonus opportunity for the 2025 fiscal year that is the sum of:
- 160% of his earned base salary during the first nine months of the 2025 fiscal year, and
- 150% of his earned base salary during the last three months of the 2025 fiscal year, according to a filing with the U.S. Securities and Exchange Commission.
Based on Allan’s current base salary of $1.35 million, his potential bonus for 2025 totals more than $2 million, according to a Hartford Business Journal calculation.
In 2026, Allan will receive an additional “special equity incentive grant” valued at $6 million – 50% in restricted stock units and 50% in stock options, according to the SEC filing.
Further, Allan will receive health and welfare benefits, comparable to those for active senior executives, until age 65.
The
New Britain-based toolmaker announced on Monday that Christopher Nelson – chief operating officer and executive vice president and president of the company’s tools and outdoor business – will succeed Allan as CEO, effective Oct. 1.
