Scott Garula

About Scott Garula

Scott A. Garula, 54, is Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) of Cintas, effective June 1, 2025, after joining the company in 1996 and serving in multiple operating and finance leadership roles; he oversees finance and accounting, quality and engineering, corporate development, and shared services . In Q1 FY2026 under his CFO tenure, Cintas reported operating income of $617.9M vs. $561.0M YoY with operating margin of 22.7% vs. 22.4%, net income of $491.1M vs. $452.0M, and diluted EPS of $1.20 vs. $1.10; the company also raised its quarterly dividend by 15.4% and repurchased $347.4M of shares during the quarter . The company’s pay-versus-performance disclosure shows strong long-term alignment, with 2025 cumulative TSR of 384.67 on a $100 base and diluted EPS of $4.40; FY2025 sales growth used for incentive calculations was 7.7% (between target and maximum) .

Past Roles

Fixed Compensation

Performance Compensation

Annual Cash Incentive Framework (FY2025 program design)

• CEO/COO: EPS and Sales Growth (42.5% each) plus Non-Financial (15%) with payout range 0–200% for financial components and 0–100% for non-financial; FY2025 EPS achievement for incentive purposes was $4.40 (between Target and Maximum) and sales growth 7.7% (between Target and Maximum) .
• CFO/GC (FY2025 NEO design): 50% EPS and 50% individual performance (subjective) .
• Note: Mr. Garula’s CFO targets (from appointment 8‑K) set his bonus opportunity at 90% of salary; weighting specifics for FY2026 will follow CTAS’ established framework, which the Compensation Committee anticipated continuing into FY2026 .

Long-Term Equity Incentives and Vesting

Equity Ownership & Alignment

Employment Terms

Performance & Track Record (early CFO tenure indicators)

Compensation Committee, Peer, and Say‑on‑Pay Context

• Compensation Committee: Melanie W. Barstad (Chair), Beverly K. Carmichael, Joseph Scaminace .
• Market benchmarking: Targets consider companies with revenue $10–$20B and peer/survey data; philosophy expected to continue into FY2026 .
• Stock performance peer group for TSR graph: ABM Industries, Aramark, Rollins, UniFirst .
• Say‑on‑Pay support: ~96% FOR in 2024; Board noted strong support and maintained program approach .

Compensation Structure Analysis

• High at‑risk pay mix: Annual incentive (90% of salary target) and sizable long‑term equity ($1.5M target) emphasize performance alignment; promotion grants add near‑term equity exposure ($250k RS; $75k options) .
• Metric rigor: EPS and Sales Growth drive both annual cash and LTI sizing, with clear threshold/target/max curves; FY2025 achievement fell between target and maximum for both metrics, reinforcing pay-for-performance linkage .
• Vesting and ownership: Three-year cliff vest on restricted stock and back‑loaded option vesting (33% annually from years 3–5) promote retention and longer-term alignment; 3x salary ownership guideline with seven-year compliance runway for newly promoted executives .

Equity Ownership & Trading Signals

• Individual ownership: The FY2025 proxy aggregates “all directors and current executive officers” and explicitly includes Mr. Garula, but does not disclose his individual share count; no pledging disclosed for him .
• Hedging/derivatives/shorts prohibited for officers under Insider Trading Policy, reducing misalignment risk; 10b5‑1 plan usage not disclosed in filings reviewed .
• Form 4 activity: Company filings in scope did not include Form 4 data; no analysis of recent insider sales is available from these sources.

Employment Terms

• No guaranteed multi‑year contract, severance multiples, or golden parachute—only four weeks’ notice/comp, minimal cash exposure, and standard equity treatment under plans, which reduces change‑in‑control cash risk and reinforces equity‑based alignment .

Investment Implications

• Alignment and retention: Garula’s package (90% target bonus; $1.5M annual LTI; three‑year RS and 3–5 year option vesting) and 3x ownership guideline support retention and multi‑year value creation incentives while limiting guaranteed pay .
• Limited severance/cash leakage: Absence of employment/severance agreements and modest notice pay minimize cash outlay risk in adverse scenarios; equity is the primary lever (double‑trigger acceleration when awards are assumed; single‑trigger if not assumed), preserving alignment around sustained TSR and earnings growth .
• Early execution markers: Q1 FY2026 results under his tenure show continued margin expansion, healthy cash generation, a 15.4% dividend hike, and active buybacks, consistent with disciplined capital allocation; FY2026 planning assumptions (interest/tax) appear prudent .
• Watch items: Track future proxy for Garula’s individual ownership, grant sizing vs. performance, and any Form 4 sales around vesting dates to gauge potential selling pressure; monitor any changes to incentive metric rigor (EPS/sales growth thresholds) for pay‑for‑performance integrity .