Dive Brief:
- Mueller Water Products will grant incoming CFO Michael Morgan a one-time cash sign-on bonus of $700,000 when he takes the top finance seat on or about Nov. 19, according to a Tuesday securities filing. He will also receive an initial equity award of $500,000, granted on his start date and set to vest in equal installments on the first and second anniversaries of that date, respectively, the company said.
- Morgan, an alum of companies including Labcorp and Indicor, will succeed Melissa Rasmussen as CFO following the filing of the Atlanta-based water product company’s annual 10-K for its fiscal 2026 ended Sept. 30, according to a press release. Rasmussen, who is departing after about a year in the seat, will continue to serve as CFO until that point and will serve in an advisory role until Dec. 31.
- Morgan’s “operational background and experience in financial strategy will strengthen how we plan, forecast and execute across the business,” Mueller President and CEO Paul McAndrew said in a statement. “Mike will be an important partner in advancing the Mueller Operating System and translating operational improvements into sustained value for customers, employees and shareholders.”
Dive Insight:
Morgan has served as CFO for Indicor, an industrial manufacturer, since April 2025, according to his LinkedIn profile. Previously, he held a number of roles during 10 years at Lapcorp, including SVP of enterprise finance and CFO of its biopharma lab services segment. His past experience also includes numerous positions at the Timken Company and PerkinsElmer.
As Mueller’s CFO, Morgan will receive an annual base salary of $575,000 and will be eligible for an annual target bonus of 80% of his base pay, according to the filing with the Securities and Exchange Commission. Beginning in fiscal 2027, Morgan will also be eligible for a target long-term incentive opportunity of $1.3 million.
Mueller also entered into a transition agreement with Rasmussen which provides for severance benefits payable to her upon a qualifying termination outside of a change in control, according to the SEC filing. The agreement also provides for a retention payment of $431,897 and an annual bonus for fiscal year 2026 based on the actual performance.
Rasmussen took the CFO seat last January, according to an SEC filing at the time. She has “played an important role in strengthening our finance organization and supporting Mueller’s priorities, and we appreciate her commitment to supporting an orderly transition,” McAndrew said in the release. Her transition is not the result of any disagreement with the company, Mueller said.
The water products company, which makes fire hydrants, pipes and water meters, among other products, has a market cap of approximately $3.4 billion and has reported an uptick in profitability and free cash flow over the course of its fiscal 2026.
For its fiscal third quarter ended June 30, Mueller reported net income of $67.3 million compared to $52.5 million in the prior year period, according to its Aug. 5 earnings report. Free cash flow, meanwhile, reached $110.6 million compared with $103 million in the prior year period, while the business also reported a jump in net sales and operating income.
Company executives credited its positive quarterly results to ongoing efforts to strengthen its cash generation and simplify the business, with Mueller selling off a United Kingdom-based water pressure technology business at the end of June, McAndrew said according to an earnings call transcript. The company incurred $11.2 million in “strategic reorganization” and other charges during the quarter, primarily related to the sale of its I2O business, Rasmussen said.
The business also highlighted new opportunities surrounding AI data centers, with industrial water — including integrating Mueller’s specialty valve products into data centers — one of its fastest-growing categories, McAndrew said during the company’s earnings call.
