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Key Points
- Eaton's stock slump has erased $44.86 million from CEO Craig Arnold’s holdings, bringing his stake’s value down to $228.75 million.
- The company posted $24.88 billion in 2024 sales, with net income rising 17.7% to $3.8 billion, yet shares have dropped 16.4%.
- Eaton shares are down 6.48% year-to-date, cutting a $100,000 investment to $93,520 as market volatility pressures valuations.
Craig Arnold, one of America’s richest Black CEOs, has taken a hit as shares of Eaton Corporation tumbled on the New York Stock Exchange (NYSE), wiping out nearly $45 million from the value of his stake.
As chairman, president, and CEO of Eaton, Arnold holds a 0.14 percent stake in the American-Irish multinational, owning 737,044 shares. Over the past 23 days, the value of his holdings has dropped by $44.86 million as investors pulled back from the stock.
This downturn follows a strong start to the year. Between Jan. 1 and 21, Arnold’s stake gained $10.62 million, briefly pushing its value past $255 million before the recent decline.
Eaton posts strong profits, shares fall
Under Arnold's leadership, Eaton Corporation, a global provider of energy-efficient solutions operating in more than 175 countries, has delivered strong returns for shareholders. Looking ahead to 2025, the company remains confident about its growth in power management markets.
Eaton’s sales climbed to $24.88 billion in 2024, driven by strong demand in its Electrical Americas, Electrical Global, and Aerospace segments. Net income jumped 17.7 percent to $3.8 billion from $3.22 billion the previous year, with earnings per share rising to $10.80 from $9.12.
Despite the solid financial performance, Eaton’s stock has dropped 16.4 percent in the past 23 days, falling from $371.23 on Jan. 22 to $310.36. The decline has wiped out a chunk of its market value, bringing its capitalization below $124 billion—a setback for shareholders, including Arnold.
Market volatility cuts into Arnold’s holdings
The steep drop in Eaton’s share price has also taken a toll on Arnold’s holdings. The value of his stake has fallen by $44.86 million, sliding from $273.61 million on Jan. 22 to $228.75 million.
While the company remains well-positioned for long-term growth, recent market swings have weighed on its valuation. Still, Eaton’s fundamentals remain strong, with steady demand across key segments shaping its outlook for 2025.
What it means for investors
Eaton shares have declined 6.48 percent since the start of the year, giving back some of their 2024 gains. A $100,000 investment in Eaton at the beginning of the year would now be worth $93,520—a loss of $6,480.
