Maria Hollandsworth
About Maria Hollandsworth
Maria Hollandsworth, age 59, is President and Chief Operating Officer of El Pollo Loco (LOCO). She was appointed COO on October 31, 2022, served as Interim CEO from November 4, 2023 to March 11, 2024, and has served as President since March 2024 . Her background includes 20+ years at Jack in the Box in operations leadership and strategic initiatives across 2,000+ restaurants, and as Regional VP of Operations at Dunkin’ (Inspire Brands), partnering with franchisees on market plans and profitability . Company performance metrics tied to her incentive plans include adjusted EBITDA and revenue; in FY2024 LOCO achieved adjusted EBITDA of $62.7m versus a $61.0m target and revenue of $427.4m versus a $433.1m target, resulting in a 102.1% company performance payout under the Annual Incentive Plan .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Jack in the Box | Vice President, Strategic Initiatives & Operations Services | 2013–2018 | Executed enterprise-wide strategic initiatives across 2,000+ restaurants to improve operations and scalability . |
| Jack in the Box | Operations leadership (company and franchise) | Not disclosed (prior to 2013) | Built deep operating expertise across both company and franchise systems . |
| Dunkin’ (Inspire Brands) | Regional Vice President of Operations | Not disclosed (before joining LOCO in 2022) | Drove strategic market plans with franchisee leaders; focused on profitability, guest satisfaction, and relationship building . |
External Roles
| Organization | Role | Years |
|---|---|---|
| Federal Reserve Bank of San Francisco – Los Angeles Branch | Appointed Director | Since January 2025 |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary (annualized) | $56,558 | $400,000 | $450,000 (12.5% increase YoY) |
| Target Bonus % | Not disclosed | 50/75/100% depending on role (COO vs Interim CEO) | 75% as COO; 100% while Interim CEO (Jan 1–Mar 11, 2024) |
| Actual Bonus Paid (AIP; Non-Equity Incentive Plan Compensation) | $0 | $80,702 | $357,560 |
| Cash Retention/Sign-on | $0 | $75,000 (Dec 1, 2023) | $75,000 (May 1, 2024) |
Performance Compensation
Annual Incentive Plan (AIP) Structure and FY2024 Outcomes
| Metric | Weighting | Threshold | Target | Maximum | Actual | Payout (Company Performance Factor) |
|---|---|---|---|---|---|---|
| Adjusted EBITDA | 80% | $54.9m | $61.0m | $69.5m | $62.7m | 102.1% |
| Revenue (Company sales + franchise royalties) | 20% | $420.2m | $433.1m | $452.6m | $427.4m | 102.1% |
| Individual Performance Factor (IPF) | Modifier | 0–140% | 100% baseline | 140% | Determined by Committee | Applied to Company factor |
- AIP performance measures: Adjusted EBITDA and Revenue . Awards range 0–180% for company metrics and IPF 0–140% .
Long-Term Incentive Awards (LTI) – Grants and Vesting
| Grant Date | Award Type | Shares/Units | Strike (if options) | Fair Value | Vesting | Notes |
|---|---|---|---|---|---|---|
| May 9, 2023 | Restricted Share Award (RSA) | 13,797 | — | $125,000 | Time-based; generally 25% annually over 4 years | Standard LTI under Incentive Plan |
| May 9, 2023 | Stock Options | 28,802 | $9.06 | $125,000 | 25% annually over 4 years; no rights until exercise | Under Incentive Plan |
| Nov 7, 2023 | RSU (Interim CEO RSUs) | 23,641 | — | $200,000 | Cliff vest on 1-year anniversary (11/4/2024) or earlier on Qualifying Termination | Retention linked to Interim CEO appointment |
| May 15, 2024 | Stock Award | 45,249 | — | $534,391 market value at 12/25/2024 | Not specified beyond standard plan terms | Outstanding at FY2024 year-end |
| May 29, 2024 | Stock Options | 61,905 unexercisable | $10.46 | $366,949 market value (related stock awards) | Standard option vesting; expires 5/29/2034 | Outstanding at FY2024 year-end |
- General vesting policy: restricted shares and options vest in four equal annual installments commencing on the one-year anniversary of grant; restricted shares carry voting/dividend rights during vesting; options have no rights until exercise .
- 2024 Summary Compensation (mix): Stock awards $825,000; Option awards $325,000 for Hollandsworth .
Option Exercises and Stock Vesting (Realized)
| Metric | 2023 | 2024 |
|---|---|---|
| Shares acquired on vesting | 4,496 | 27,090 |
| Value realized on vesting | $37,811 | $340,902 |
| Option exercises / value | — | — |
Equity Ownership & Alignment
| Metric | FY2024 (Record date 4/1/2024) | FY2025 (Record date as stated) |
|---|---|---|
| Common Shares | 40,361 | 118,135 |
| Vested but Unexercised Options | — | 7,200 |
| Acquirable within 60 days (options/RSUs) | 7,200 | 22,678 |
| Total Beneficial Ownership | 47,561; less than 1% of class | 148,013; less than 1% of class |
- Stock ownership guidelines: CEO required to hold ≥5x base salary; CEO may designate other officers to be subject; options and unvested performance-based awards excluded from “owned” definition .
- Hedging/pledging: Company prohibits hedging and pledging by directors/officers (limited pledge exception requires pre-approval); margining prohibited .
- Change-in-control equity treatment: Double-trigger acceleration—unvested equity fully vests upon termination without cause/for good reason within 12 months post-CIC; performance conditions deemed achieved at target .
Employment Terms
| Term | Details |
|---|---|
| Role/Start | COO effective 10/31/2022; Interim CEO 11/4/2023–3/11/2024; President since March 2024 . |
| Base Salary | $400,000 under agreement (COO); increased to $450,000 in 2024 based on performance/experience . |
| Target Bonus | 75% of base salary (COO); 100% while Interim CEO . |
| Retention Bonuses | $75,000 on Dec 1, 2023; $75,000 on May 1, 2024 (subject to continued employment) . |
| Interim CEO RSUs | $200,000 grant; cliff vest on 1-year anniversary of agreement (11/4/2024) or upon Qualifying Termination (company non-renewal or termination without cause/for good reason) . |
| Severance (Qualifying Termination) | 1 year continued base salary; pro-rata AIP bonus for year of termination based on performance; full accelerated vesting of Interim CEO RSUs (subject to release of claims) . |
| Restrictive Covenants | Perpetual confidentiality; 1-year post-termination non-interference with relationships and 1-year non-solicitation of employees . |
| Clawback | Compensation and awards subject to clawback policy per SEC/Nasdaq; Equity Incentive Plan includes clawback language . |
| Tax Gross-ups | None for perquisites/benefits (policy) . |
Potential Payments Upon Termination (as of 12/27/2023 scenario)
| Scenario | Cash Severance | Equity Accelerated Value | Total |
|---|---|---|---|
| Involuntary Termination (no CIC) | $400,000 | $213,951 | $613,951 |
| Involuntary Termination in Connection with Change in Control | $400,000 | $338,814 | $738,814 |
Compensation Committee Analysis
- Committee members (2024): Douglas J. Babb, Samuel N. Borgese, Mark Buller, Deborah Gonzalez; all independent and no related-party conflicts disclosed .
- Program design: Pay-for-performance philosophy; emphasis on LTI with four-year vesting; independent consultant to the Committee; clawback policy; no options repricing; no tax gross-ups .
Investment Implications
- Alignment: Hollandsworth’s pay mix skews meaningfully to equity (2024 stock awards $825k; options $325k), with AIP linked to adjusted EBITDA (80%) and revenue (20%); governance prohibits hedging/pledging, supporting alignment .
- Retention risk: Retention bonuses in late 2023 and mid-2024 and RSU cliff vest in Nov 2024 reduced near-term risk; ongoing severance protections (1x salary + pro-rata bonus) and standard non-solicit/non-interference terms provide stability .
- Potential selling pressure: Significant 2024 vesting (27,090 shares; $340,902) and ongoing time-based vesting plus options expiring in 2033/2034 could create periodic liquidity events; monitor 10b5‑1 plans and Form 4s around vest dates .
- Change-of-control economics: Double-trigger equity acceleration at target performance is standard but increases deal-related dilution; equity-heavy LTI increases sensitivity to stock price outcomes .
- Execution: Deep multi-brand/QSR operations background (Jack in the Box, Dunkin’) and external appointment to the Fed LA Branch suggest strong operating credibility and stakeholder network; FY2024 AIP outcomes (102.1% company factor) indicate modest overachievement on financial goals .