Jordan Broggi
HOME DEPOTAbout Jordan Broggi
Jordan Broggi (age 41) is Executive Vice President – Customer Experience and President – Online at The Home Depot, serving in this role since June 2024; he joined Home Depot in 2013 and previously held senior finance and online leadership roles after earlier positions in finance and strategy at LexisNexis, Bain & Company, and General Motors . Under his remit, management highlighted “healthily” growing dot-com sales across consumer and Pro segments driven by improved site experience and fastest delivery speeds in company history, contributing to improved conversion and omnichannel engagement . Home Depot’s FY2024 results (53 weeks) showed net sales of $159.5B (+4.5% YoY), operating income down 0.8%, net earnings down 2.2%, and ROIC of 31.3%, with executive compensation tied to sales, operating profit, inventory turns, and long-term ROIC/operating profit goals .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Home Depot | EVP – Customer Experience & President – Online | Jun 2024–present | Leads online growth and customer experience; management cites improved site experience, conversion, and fastest delivery speeds supporting dot-com sales across consumer and Pro . |
| The Home Depot | SVP & President – Online | May 2022–Jun 2024 | Drove digital commerce initiatives and fulfillment capabilities ahead of promotion to EVP . |
| The Home Depot | SVP, Finance | Oct 2020–May 2022 | Led finance functions including U.S. Retail finance and FP&A, supporting strategic and financial planning . |
| The Home Depot | VP, Finance | Oct 2016–Oct 2020 | Roles across merchandising finance, supply chain finance, FP&A, and strategic business development . |
| The Home Depot | Joined company | 2013 | Progression through finance and strategy roles prior to senior leadership . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LexisNexis | Finance/Strategy roles | Prior to 2013 | Corporate finance and strategy experience . |
| Bain & Company | Consulting/Strategy | Prior to 2013 | Strategy advisory background . |
| General Motors | Finance/Strategy roles | Prior to 2013 | Operating and strategic finance experience . |
Fixed Compensation
- Not disclosed for Broggi; proxy compensation tables cover NEOs (CEO, CFO, SEVP, EVP–Merch, GC, and a former EVP) and do not include Broggi’s salary or target bonus percentages .
Performance Compensation
Annual Cash Incentive (MIP) – Program Design and FY2024 Results
| Metric | Weighting | Threshold | Target | Maximum | Actual | Performance vs Target |
|---|---|---|---|---|---|---|
| Sales ($ billions) | 40% | 139.39 | 154.88 | 170.37 | 153.37 | 98% |
| Operating Profit ($ billions) | 40% | 19.62 | 21.80 | 23.98 | 21.42 | 98% |
| Inventory Turns | 10% | 4.10 | 4.55 | 5.01 | 4.71 | 98% |
| Pro Strategic Goal | 10% | n/a | Increased managed account sales | n/a | Achieved | 98% |
- FY2024 MIP paid slightly below target overall, reflecting below-target sales and operating profit and above-target inventory turns; the Pro strategic goal was achieved .
Long-Term Incentives – PSU Framework (FY2024–FY2026 Award)
| Metric | Weighting | Threshold | Target | Maximum | Status at FYE2024 |
|---|---|---|---|---|---|
| Three-year average ROIC | 50% | 30.98% | 36.45% | 41.91% | 37.68% – tracking between target and max |
| Three-year average Operating Profit ($ billions) | 50% | 18.45 | 21.71 | 24.96 | 21.42 – tracking between target and max |
| Payout Range | — | 50% | 100% | 200% | Shares earned at cycle end based on performance |
Vesting Schedules and Award Design (applies to executive officers)
| Award Type | Vesting | Key Terms |
|---|---|---|
| Performance Shares (PSUs) | Cliff after 3 years (subject to performance) | Double-trigger CoC: pro rata treatment if terminated without cause within 12 months; retirement eligibility (age 60 + 5 yrs) makes awards non-forfeitable; dividend equivalents accrue and pay based on shares earned . |
| Performance-based Restricted Stock (annual grant) | 50% at 30 months; 50% at 60 months; performance gate requires ≥90% of MIP operating profit target before time-based vesting | Becomes non-forfeitable at retirement eligibility once performance condition is met; dividends accrue until gate is met; double-trigger CoC acceleration . |
| Nonqualified Stock Options | Vest 25% annually on the 2nd–5th anniversaries; 10-year term | Exercise price = market close on grant date; retirement eligibility makes options non-forfeitable but not exercisable before vest dates; death/disability and double-trigger CoC acceleration provisions . |
| Grant Timing | Annual grants approved late Feb; effective on March LDC meeting date; mid-year awards effective at next quarterly LDC meeting | Equity timing not based on MNPI; options priced at grant-date close . |
Equity Ownership & Alignment
- Anti-hedging and anti-pledging: the company prohibits hedging/monetization transactions for all associates and prohibits pledging or margin accounts for Section 16 officers and directors .
- Stock ownership guidelines: robust guidelines for executive officers; NEOs must hold multiples of salary (CEO 6x; CFO/SEVP/EVP/GC 4x), and newly hired/promoted executives have four years to comply while holding net shares from vesting until compliant; specific ownership multiple and status for Broggi are not disclosed .
- Executive compensation clawback: mandatory recovery for accounting restatements and discretionary recovery for fraudulent/illegal conduct or intentional misconduct causing material financial or reputational harm .
Employment Terms
- Employment is at-will via offer letters (no fixed duration); letters include initial base and MIP target % and eligibility for standard officer benefit programs; letters are filed as 10-K exhibits (NEO examples referenced) .
- Severance: no severance entitlements for executive officers; on termination, executives receive only vested benefits under company plans .
- Change-in-control: no individual CoC agreements; equity awards include a double-trigger—accelerated vesting if terminated without cause within 12 months post-CoC; older single-trigger awards no longer outstanding .
- Non-compete/non-solicit: NEOs subject to 24–36 months post-termination non-compete and non-solicit; executives also subject to post-termination confidentiality .
- Death/disability: equity generally accelerates on death or disability; program includes defined death benefits for certain NEOs .
- Retirement eligibility: equity awards for salaried associates (including NEOs) generally become non-forfeitable at retirement (age ≥60 with ≥5 years continuous service), though transfers/exercises still follow time-based schedules .
Compensation Committee Analysis
- The Leadership Development & Compensation (LDC) Committee (Wayne M. Hewett, Chair; Stephanie C. Linnartz; Caryn Seidman‑Becker) is independent, oversees executive pay strategy, succession planning, equity/incentive plans, risk assessments, and recommends CD&A inclusion; charter available on IR site .
- Retail peer group used for benchmarking includes Amazon, AutoZone, Costco, Lowe’s, O’Reilly, Ross, Target, Kroger, TJX, Walmart; CEO target pay positioned below peers by percentile while market cap and revenue rank high .
- Say‑on‑pay support: ~93% approval at 2024 annual meeting; LDC maintained structure for FY2024 following shareholder engagement .
Performance & Track Record
- Digital/customer experience: management highlighted improved browse/search, fastest delivery speeds, and stronger conversion on homedepot.com; dot‑com sales up across consumer and Pro with increased cross‑channel purchases .
- AI enablement: launched Magic Apron, a proprietary generative AI tool to answer product/project questions and support customers; expanding across product pages, app, and soon Pro B2B site .
- Military partnerships: expanded tax‑free online assortment through AAFES and NEXCOM programs, reinforcing brand positioning and digital commerce reach; Broggi emphasized benefits to military families .
- Company operating performance (FY2024): net sales $159.5B (+4.5%), operating income $21.5B (−0.8%), net earnings $14.8B (−2.2%), ROIC 31.3%; FY2024 MIP funded slightly below target; long‑term PSU metrics tracking between target and max after year one .
Investment Implications
- Alignment: Executive incentives are heavily performance‑based (MIP linked to sales/operating profit/turns and PSUs tied to 3‑yr ROIC/operating profit), with anti‑hedging/pledging and ownership/retention guidelines—supporting strong pay‑for‑performance alignment and reducing agency risk .
- Retention: At‑will employment with no severance, but equity’s long vesting (3–5 years), retirement eligibility rules, non‑compete/non‑solicit (24–36 months for NEOs), and double‑trigger CoC protection collectively lower near‑term departure risk and incentivize long‑term execution in customer experience/online .
- Execution signals: Monitor PSU progress against ROIC/operating profit targets and digital KPIs; management commentary indicates online momentum (conversion, delivery speeds), suggesting upside leverage if macro tailwinds return and larger projects recover .
- Governance: High say‑on‑pay approval and independent LDC oversight indicate shareholder support for current pay design; any material shifts in metric difficulty or equity mix (e.g., reduced at‑risk components) would be noteworthy from a risk perspective .