Raul Alvarez
LOWES COMPANIESAbout Raul Alvarez
Independent director at Lowe’s since 2010 (age 69). Alvarez is Chair of the Compensation Committee and a member of the Technology Committee. He brings 40+ years of retail and operating experience, including President/COO of McDonald’s, Executive Chairman of Skylark (Japan), and Operating Partner at Advent International; recognized for consumer marketing, supply chain, strategic planning, and capital allocation expertise . He holds a B.B.A. in Business Administration from the University of Miami .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Advent International | Operating Partner | 2017–present | Private equity operating partner; capital investment/financial analysis focus |
| Skylark Co., Ltd. | Executive Chairman | 2013–2018 | Led large restaurant operator in Japan |
| McDonald’s Corporation | President & COO; previously President North America/USA | 2006–2009; 1994–2006 | Global brand/operator; deep consumer, brand, supply chain, and strategy experience |
| Wendy’s International; Burger King | Leadership roles | Prior to 1994 | Restaurant operations leadership |
External Roles
| Company | Role | Committee Roles |
|---|---|---|
| Eli Lilly and Company | Director | Chair, Talent and Compensation Committee |
| First Watch Restaurant Group, Inc. | Independent Chairman | Board leadership |
| Traeger, Inc. | Lead Independent Director | Chair, Compensation Committee |
Board Governance
- Committee assignments: Chair, Compensation; Member, Technology .
- Independence: Board determined Alvarez is independent under NYSE and SEC rules; all Board committees are fully independent .
- Attendance: Board held five meetings in fiscal 2024; each incumbent director attended ≥90% of Board/committee meetings; all directors attended the 2024 Annual Meeting .
- Director commitments: The Nominating & Governance Committee reviewed Alvarez’s outside roles (Lilly chair of talent/comp, Traeger lead independent and comp chair, First Watch independent chairman) and concluded he commits appropriate time to serve effectively; he complies with Lowe’s overboarding limits (≤4 boards) .
- Executive sessions: Independent directors meet in executive session at each regular Board meeting .
Fixed Compensation (Director)
| Item | Fiscal 2024 | Notes |
|---|---|---|
| Cash retainer | $100,000 | Standard non-employee director cash retainer |
| Committee chair fee (Compensation) | $20,000 | Compensation Committee chair retainer |
| Total cash fees earned (Alvarez) | $120,000 | As reported for Alvarez |
| Equity award (annual DSUs – grant date fair value) | $221,290 | 1,000 deferred stock units to each director; units vest by the earlier of 1 year or the day before next AGM |
| Total 2024 director compensation (Alvarez) | $341,290 | Cash plus stock awards |
- 2025 changes approved: annual DSU grant raised to $215,000; Chair retainers set at $30,000 (Audit) and $25,000 (Compensation) .
Performance Compensation
Directors do not receive performance-conditioned pay; equity is delivered as deferred stock units (time-based) . As Compensation Committee Chair, Alvarez oversees executive incentive design and outcomes:
| Executive Incentive Program (for NEOs) | Metric/Design | 2024 Weight/Outcome |
|---|---|---|
| Annual Incentive Plan (AIP) | Sales; Operating Income; Inventory Turnover; Pro Sales Growth | Weights: 40%; 40%; 10%; 10% . Overall payout: 98.24% of target (threshold-to-target financials; above-target strategic goals) . |
| Long-Term PSUs (3-year) | ROIC (avg. over 3 yrs) with relative TSR modifier (vs. S&P 500) | 2022–2024 PSU payout: 91.84% of target (ROIC below target; TSR at median) . 2024 grants maintain ROIC + TSR design; payout range 34%–200% with modifier caps . |
Governance guardrails: No hedging/pledging; robust clawbacks (no-fault restatement and fault-based misconduct policies); independent consultant (Semler Brossy); strong say‑on‑pay support (92% in 2024) .
Other Directorships & Interlocks
| Company | Overlap/Interlock Risk | Notes |
|---|---|---|
| Eli Lilly and Company | Compensation leadership across multiple issuers | Board assessed time commitments and maintained nomination; transactions with entities linked to directors were immaterial (<2% of counterparty revenues) . |
| First Watch Restaurant Group, Inc. | Independent Chair | Governance leadership; no related-party transactions disclosed . |
| Traeger, Inc. | LID and Compensation Chair | Governance leadership; no interlocks with Lowe’s executives per proxy disclosure . |
- Compensation Committee interlocks: None. No Lowe’s executive served on the compensation committee of another entity whose executive served on Lowe’s Board or Compensation Committee in 2024 .
Expertise & Qualifications
- Retail/operations: 40+ years operating experience in global restaurant and consumer brands (McDonald’s President/COO; Skylark Executive Chairman) .
- Capital allocation/PE: Operating Partner at Advent International; strong capital investment and financial analysis background .
- Human capital/governance: Extensive board experience; perspectives on talent development and compensation; deep Lowe’s institutional knowledge (director since 2010) .
- Education: B.B.A., University of Miami .
Equity Ownership
| Item | As of/Details | Value/Status |
|---|---|---|
| Beneficial ownership (shares) | March 24, 2025 | 38,896 shares; <1% of class |
| Deferred Stock Units (DSUs) held | Jan 31, 2025 | 39,719 units (settle in stock upon board service termination) |
| Ownership guidelines | 5× annual cash retainer; 5-year compliance window | All current directors have met or are on track |
| Hedging/Pledging | Company policy | Prohibited for directors and executives |
Insider Trades
| Period Checked | Form 4 Activity for Raul Alvarez |
|---|---|
| 2023-01-01 to 2025-11-20 | No insider transactions found (Form 4) for LOW during period (insider-trades tool run 2025-11-20). |
Governance Assessment
-
Positive signals
- Independent director and seasoned Compensation Committee Chair with strong cross-industry pay governance exposure; committee uses balanced, transparent metrics (sales, operating income, inventory turnover, Pro growth; ROIC with TSR modifier) .
- Strong say‑on‑pay support (92% in 2024), supporting pay-for-performance credibility under his committee leadership .
- Attendance meets expectations (≥90%); independent Board and committees; robust anti-hedging/pledging and clawback policies .
- No compensation committee interlocks or related-person transactions involving Alvarez disclosed; independence reaffirmed .
-
Watch items
- Multiple external leadership roles (Lilly comp chair; Traeger LID/comp chair; First Watch independent chair) elevate time-commitment and multi-issuer comp-committee exposure. However, Lowe’s Nominating & Governance Committee expressly assessed and concluded his commitments are appropriate and within policy (≤4 public boards) .
- Director pay program modestly increased equity grant for 2025—aligned with market movement; not a red flag but worth monitoring alongside workload and engagement .
Overall, Alvarez’s governance profile supports investor confidence: independent status, strong attendance and committee leadership, with structured compensation oversight and no material conflicts identified in disclosures .