Tractor Supply extends CEO Lawton's contract
Tractor Supply Company has extended the contract of President and CEO Hal Lawton.
The move calls for Lawton’s contract to be extended for another three years to 2026, with an evergreen extension going forward, the farm and ranch retailer reported.
Lawton joined Tractor Supply in January 2020 as president and CEO. Since, the company initiated its “Life Out Here” strategy. Under the leadership of Lawson, net sales at Tractor Supply have increased 70% with diluted earnings per share soaring 200%.
Tractor Supply posted a record fourth quarter for 2022 including sales of $4.01 billion, rising 20.7% from fourth quarter 2021 sales of $3.32 billion. Sales for fiscal 2022 increased 11.6% to $14.20 billion from $12.73 billion in fiscal 2021.
Last year, Tractor Supply opened 63 new stores and 9 new Petsense by Tractor Supply. The company also made a major acquisition when it purchased Orscheln Farms in a $238 million deal.
“This is an exciting time to be leading Tractor Supply, as we celebrate our 85th anniversary this year,” Lawton said. “I am grateful for the opportunity to continue to build on our resilient and proven business model. Together with our board, our leadership team and more than 50,000 incredibly dedicated team members, I believe we are well-positioned to continue to deliver long-term growth and value creation.”
Lawton previously served as president of Macy’s and succeeded CEO Greg Sandfort who retired in 2020.
More leadership moves
The Brentwood, Tenn.-based retailer also reported that the board of directors has elected long-standing member Edna Morris as chairman.
Morris will succeed Cynthia Jamison, who is retiring, effective May 11, 2023, following the 2023 Annual Meeting of Stockholders.
Additionally, Tom Kingsbury has resigned, effective Feb. 6, 2023, as a member of the board of directors in order to focus on his new role as CEO at Kohl’s Corporation.
“On behalf of the Board of Directors, we thank Cindie for over two decades of distinguished service to Tractor Supply,” Morris said. “Her exceptional track record has served our stakeholders well and helped position us for future growth. We are deeply appreciative of Cindie’s numerous contributions to Tractor Supply and wish her and her family the very best. We also appreciate Tom’s dedication to Tractor Supply and extend our best to him in his future endeavors.”
Regarding her own new role as chairman, Morris said, “I am incredibly honored and humbled to assume the role of chairman of the board. I look forward to continuing to work alongside Hal and the leadership team to drive strong shareholder value and capitalize on the momentum we have behind our Life Out Here strategy.”
Chairman-elect Morris brings 18 years of service on the Tractor Supply Board of Directors and more than 40 years of executive leadership experience in restaurant and investment organizations of various sizes and types, in different growth stages, and with wide ranging corporate cultures, business models and leadership styles.
At Tractor Supply, Morris currently serves as Chair of the Compensation Committee and as a member of the Corporate Governance and Nominating Committee.
“Hal and the team have delivered strong financial performance including record revenue and profitability in 2022. He has proven to be a strategic and innovative leader with a deep passion for and commitment to Tractor Supply’s Mission and Values. The board of directors is excited for Hal to continue to lead the business into the future and execute on our strategy,” Morris added.
Jamison has served as a director of the company since 2002. During her tenure on the board, she has served as chairman since 2014 and was the lead independent director of the company from 2010 to 2014. Her previous positions on the board include audit committee chair, compensation committee chair, and corporate governance chair.
“Serving on the Tractor Supply Board of Directors has been a highlight of my career,” Jamison said. I am proud to have been part of the board and work alongside such a talented leadership team. With a strong culture and a commitment to its Mission and Values, it has been an honor to be part of Tractor Supply’s journey the past 20 years. I believe Tractor Supply is a vibrant and growing company with great opportunities ahead.”
As of Dec. 31, 2022, the retailer operated 2,066 Tractor Supply stores in 49 states along with 81 stores from Orscheln Farm and Home that will be rebranded to the Tractor Supply banner by the end of 2023.
Tractor Supply also operates 186 Petsense by Tractor Supply stores in 23 states.
