Ryan Grimsland
ADVANCE AUTO PARTSAbout Ryan Grimsland
Ryan P. Grimsland is Executive Vice President and Chief Financial Officer at Advance Auto Parts (AAP). He joined AAP on November 27, 2023 after nearly two decades at Lowe’s, rising through senior finance roles; he is 47 years old as of March 17, 2025 . His compensation is tightly linked to performance: 2024 short‑term incentives paid just 10% based solely on individual objectives amid zero payouts on operating income and comparable store sales, and the 2022‑2024 PSU cycle vested at 0% on relative TSR, highlighting strict pay-for-performance alignment . Company governance prohibits hedging and pledging (with limited exceptions), enforces clawbacks, and requires CFO stock ownership of 3x base salary; AAP reports executives are in compliance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lowe’s Companies, Inc. | SVP, Strategy & Transformation | Jan 2023–Nov 2023 | Led enterprise strategy and transformation initiatives to improve profitability and execution |
| Lowe’s Companies, Inc. | SVP Finance – Corporate Finance, Enterprise Strategy & Treasurer | Feb 2021–Jan 2023 | Oversaw corporate finance, treasury, and strategy to optimize capital allocation and balance sheet |
| Lowe’s Companies, Inc. | VP Finance – Global FP&A | Mar 2020–Feb 2021 | Led global FP&A, driving forecasting rigor and performance management |
| Lowe’s Companies, Inc. | VP Finance – U.S. Retail Operations | Nov 2018–Feb 2020 | Supported store operations performance and productivity programs |
| Lowe’s Companies, Inc. | VP Finance – International & Business Development | Aug 2017–Oct 2019 | Supported international and new business initiatives |
| Havertys Furniture; UBS | Operations and finance roles | Prior to Lowe’s | Early career in operations and finance; foundation for retail finance leadership |
External Roles
No public company directorships disclosed for Mr. Grimsland .
Fixed Compensation
| Component | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $38,942 | $675,000 |
| Target Bonus (% of Base) | Not eligible for 2023 STI | 85% of base salary |
| Actual STI Paid ($) | $0 (no STI eligible in 2023) | $57,375 (10% payout of 85% target) |
Performance Compensation
| Metric | Weighting | Target | Actual/Payout | Notes |
|---|---|---|---|---|
| Operating Income | 65% | $432–$454 million | 0% payout (below threshold) | Payout curves flattened; threshold required > prior year |
| Comparable Store Sales | 25% | 1.8% | 0% payout (below threshold) | Threshold required > prior year |
| Individual Objectives | 10% | Pre-set functional goals | 100% payout (achieved) | Resulted in aggregate STI payout of 10% for NEOs |
| PSUs (2022–2024) | 50% of LTI mix | RTSR vs S&P 500 (target 55th percentile) | 0% payout (below threshold) | Capped at 100% if absolute TSR negative |
| RSUs | 25% of LTI mix | Three-year ratable vesting | Ongoing vesting | Dividend equivalents on time-based RSUs; no voting rights |
| Stock Options | 25% of LTI mix | Three-year ratable vesting; 10-year term | Ongoing vesting | No repricing; exercise ≥ FMV; 10-year max term |
Equity Grants Detail
| Grant Date | Instrument | Shares/Units | Exercise Price | Grant-Date Fair Value | Vesting |
|---|---|---|---|---|---|
| 3/14/2024 | PSUs (threshold/target/max) | 3,521 / 10,059 / 20,118 | — | $1,139,785 | 3-year performance; RTSR vs S&P 500 |
| 3/14/2024 | RSUs | 5,030 | — | $400,036 | Ratable over 3 years |
| 3/14/2024 | Options | 12,422 | $79.53 | $399,988 | Ratable over 3 years; 10-year term |
| 12/4/2023 | RSUs (sign-on) | 28,762 | — | $1,600,030 | Ratable over 3 years |
| 12/4/2023 | Options (sign-on) | 18,149 | $55.63 | $400,004 | Ratable over 3 years; 10-year term |
| 3/4/2025 | PSUs (threshold/target/max) | 9,110 / 26,027 / 78,081 | — | — | 3-year performance; RTSR vs S&P 500 |
| 3/4/2025 | RSUs | 59,819 | — | — | Ratable over 3 years |
As of FY2024 year-end, AAP’s closing price was $47.29, rendering Mr. Grimsland’s option grants at $79.53 and $55.63 underwater at that date, reducing near-term realizable value from options .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 17,932 shares; <1% of shares outstanding |
| Options exercisable within 60 days | 10,189 shares |
| RSUs vesting within 60 days | None |
| Unvested RSUs outstanding (FY2024 YE) | 5,030 (2024 grant) ; 19,175 (2023 grant) |
| PSUs shown at threshold (FY2024 YE) | 3,521 (2024 grant at 35% threshold representation) |
| Ownership Guidelines | CFO must hold stock valued at 3x base salary; 5-year compliance window; retain 50% of net shares until compliant |
| Compliance Status | AAP reports executives are currently in compliance with ownership guidelines |
| Hedging/Pledging | Hedging prohibited; pledging prohibited unless stringent requirements are met |
| Clawback | NYSE-compliant clawback policy adopted Aug 7, 2023; no clawbacks applied for 2024 |
Employment Terms
| Term | Provision |
|---|---|
| Start date | November 27, 2023 |
| Agreement term | Initial two-year term; agreements otherwise one-year with automatic annual renewal unless 90 days’ notice |
| Covenants | Confidentiality, non-compete, and non-solicit obligations for executive officers |
| Severance (no change in control) | Cash severance equals base salary plus average bonus over past three years; for Mr. Grimsland cash severance $675,000; stock incentives $955,661; other benefits $50,033; total $1,680,694 (as of 12/28/2024 scenario) |
| Change-in-control (double trigger) | Cash severance equals 2x base salary + 2x target bonus; for Mr. Grimsland cash $2,497,500; stock incentives $1,509,672; other benefits $62,550; total $4,069,722 (as of 12/28/2024 scenario) |
| Disability/Death estimates | Disability cash $701,500; stock $490,035; total $1,191,535; Death cash $1,128,500; stock $490,035; total $1,618,535 (as of 12/28/2024 scenario) |
| Vesting on termination | Double-trigger vesting on CoC; pro-rata PSU vesting upon certain terminations; time-based RSUs vest on death/disability; no single-trigger in Plan |
Multi-Year Compensation Summary (Ryan P. Grimsland)
| Metric | 2023 | 2024 |
|---|---|---|
| Salary ($) | $38,942 | $675,000 |
| Bonus ($) | $750,000 (sign-on cash) | — |
| Stock Awards ($) | $1,600,030 | $1,539,821 |
| Option Awards ($) | $400,004 | $399,988 |
| Non-Equity Incentive Plan ($) | — | $57,375 |
| All Other Compensation ($) | $42 | $142,010 |
| Total ($) | $2,789,018 | $2,814,194 |
Performance & Track Record
- 2024 STI metrics prioritized Operating Income (65%) and Comparable Store Sales (25%); both paid 0%, with a 10% payout solely from individual objectives, evidencing tight linkage to operational performance .
- 2022–2024 PSUs paid 0% on RTSR, reinforcing alignment with long-term shareholder value; PSUs target payout requires above‑median RTSR vs. S&P 500 constituents, capped at 100% if absolute TSR is negative .
- Say-on-pay support remained high (93.7% approval at 2024 meeting), indicating investor acceptance of the pay framework and governance practices .
Compensation Structure Analysis
- Mix and risk: Significant equity mix (PSUs/RSUs/options) with multi-year vesting and RTSR performance gating; options granted at FMV, currently underwater at FY2024 year-end price, which reduces short-term realizable comp and may lower near-term selling pressure .
- Metric tightening: 2024 STI increased weighting on Operating Income and removed FCF to sharpen focus on profitability; payout curves require improvements over prior year to trigger payouts, demonstrating increased difficulty of targets .
- Governance: No single-trigger CoC vesting; no option repricing; no 280G excise tax gross-ups; robust clawback policy and stock ownership guidelines .
Investment Implications
- Alignment: With 2024 STI paying only 10% and PSUs at 0% for the 2022–2024 cycle, compensation outcomes are highly sensitive to execution on profitability and TSR, aligning incentives with shareholder returns .
- Selling pressure: Underwater options at $79.53 and $55.63 vs. $47.29 FY2024 price reduce incentive for near-term exercises; RSUs vest ratably over three years, encouraging retention and sustained performance focus .
- Retention risk mitigants: Large 2025 RSU grant (59,819 units) and standard double-trigger CoC protections, combined with 3x salary ownership guideline and anti-hedging/pledging policies, support retention and alignment but keep realizable pay contingent on turnaround performance .