The directors of Tractor Supply built an extensive pay package to lure to town Macy’s President Hal Lawton, who next month will take over as CEO of the farm and ranch products retailer from Greg Sandfort.
In a recent regulatory filing, Tractor Supply detailed what it’ll pay the 45-year-old Lawton, who will start at the Brentwood-based company Jan. 13, in the coming year. Lawton will receive an annual salary of $1.125 million — Sandfort’s was $1.1 million last year — and be eligible for a target bonus of at least $1.4 million. The Tractor Supply board also has agreed to:
- Pay Lawton a $1 million signing bonus within a month of him starting his new job
- Grant him $1.5 million worth of restricted stock that will vest in a year
- Grant him another $1.925 million worth of restricted stock (By comparison, the board last year granted Sandfort a little more than $1.6 million in restricted stock.)
- Give him performance share units with a total fair value of $4.425 million (Sandfort last year received nearly $1.9 million worth.)
- Grant Lawton stock options worth $1.65 million. (Sandfort last year was granted $2.7 million worth of options.)
Investors have taken the news of Lawton’s hiring in stride. After closing around $95.70 the day before the announcement, they were changing hands at roughly $97.60 Tuesday morning.
This story first appeared in our sister publication the Nashville Post.