Tj Linz
LA-Z-BOYAbout Tj Linz
Terrence J. (Tj) Linz is currently President, Wholesale Brands at La‑Z‑Boy (appointed Oct 13, 2025), after serving as President, Portfolio Brands since April 2023 and President, Retail Division from April 2019 to April 2023; he is 43 years old . Linz previously led strategy and analytics at La‑Z‑Boy, introducing a new function to improve enterprise data and analytics usage, and brings 15+ years of experience across technology strategy consulting, retail, manufacturing operations, and e‑commerce . Company performance benchmarks during his La‑Z‑Boy tenure include FY sales and net income disclosed in Pay‑Versus‑Performance and total shareholder return (TSR) rising from $143.95 (FY2023) to $203.90 (FY2025) per $100 initial investment, with FY2025 net income of $99,556k and sales of $2,109,207k . La‑Z‑Boy’s annual cash bonus plan (MIP) paid at 103% of target for FY2025 on above‑target sales but below‑target operating margin, indicating moderate pay‑for‑performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| La‑Z‑Boy Incorporated | President, Retail Division | Apr 2019 – Apr 2023 | Led company‑owned Retail network and consumer experience alignment across stores . |
| La‑Z‑Boy Incorporated | President, Portfolio Brands | Apr 2023 – Oct 2025 | Led brands outside core La‑Z‑Boy; continued growth under Century Vision strategy . |
| La‑Z‑Boy Incorporated | Strategy & Analytics Leader | Prior to Apr 2019 (exact dates not disclosed) | Introduced new analytics function, improving enterprise data use . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Various (not specified) | Technology strategy consulting, retail, manufacturing operations, e‑commerce management | Not disclosed | Cross‑functional experience driving innovation and transformation . |
Fixed Compensation
| Component | FY 2025 Amount | Notes |
|---|---|---|
| Base salary (earned) | $476,667 | Salary earned during FY2025. |
| Base salary (annualized at FY2025 year‑end) | $479,000 | Year‑end rate effective July 1, 2024. |
| Target annual bonus (MIP) | 60% of eligible base salary | Company‑wide MIP target for Linz. |
| Actual annual bonus (MIP) paid | $294,501 | Paid for FY2025 performance; generally paid Q1 following year . |
| All other compensation | $45,205 | Includes company 401(k)/deferred comp contributions $43,931 and tax reimbursements $856; other perqs listed in proxy . |
Performance Compensation
| Incentive Type | Metric(s) | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash (MIP) | Sales; Operating Margin | Not disclosed | 60% of eligible base salary | Performance achieved 103% of target; payout $294,501 | Cash, generally paid in first quarter following fiscal year . |
| PSUs – FY2025 Grant | Financial goals + rTSR component | Not disclosed | Target 6,732 sh; Max 13,464 sh; Grant‑date FV $303,815 | Earned‑but‑unvested totals 1,300 (FY2025 tranche) and 3,449 (FY2024 tranche) | FY2025 tranche vests Apr 24, 2027; FY2024 tranche vests Apr 25, 2026 . |
| RSUs – FY2025 Grant | Time‑based | Not applicable | 6,732 sh; Grant‑date FV $255,749 (granted 6/24/2024) | N/A | 1/4 vest on Jun 24, 2025/2026/2027/2028 . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 57,723 sh (28,997 directly/indirectly; 28,726 rights to acquire within 60 days) . |
| Ownership % of shares outstanding | Under 1% (only CEO >1%) . |
| Vested vs unvested – RSUs | 16,229 unvested RSUs outstanding with market value $632,120 . |
| Earned but unvested – PSUs | 4,749 earned but unvested PSUs (FY2025 1,300; FY2024 3,449) . |
| Unearned PSUs (maximum) | 23,554 unearned PSUs shown at max across FY2024–FY2025 cycles . |
| Options – exercisable/unexercisable | See table below. |
| Shares pledged as collateral | None; policy prohibits hedging/pledging; table notes no shares pledged . |
| Ownership guidelines | NEOs required to hold equity ≥3x base salary; five‑year compliance window; all NEOs either meet or are within window . |
| Hedging/Pledging policy | Prohibited for executives and directors . |
Stock Options Detail and Vesting
| Grant FY | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration | Vesting Schedule |
|---|---|---|---|---|---|
| 2023 | 6,354 | 6,355 | 24.41 | 6/28/2032 | Unvested options vest 1/2 on Jun 28, 2025 and 1/2 on Jun 28, 2026 . |
| 2022 | 4,668 | 1,557 | 37.93 | 6/21/2031 | Unvested options vested on Jun 21, 2025 . |
| 2021 | 5,268 | — | 27.54 | 6/22/2030 | Previously vested; no remaining unvested . |
| 2020 | 6,674 | — | 30.24 | 6/17/2029 | Previously vested; no remaining unvested . |
RSU Vesting Schedules by Grant
| Grant FY | Unvested RSUs (#) | Vesting Dates |
|---|---|---|
| FY2025 | 6,732 | 25% on Jun 24, 2025/2026/2027/2028 . |
| FY2024 | 6,935 | 1/3 on Jun 26, 2025/2026/2027 . |
| FY2023 | 2,057 | 1/2 on Jun 28, 2025 and 1/2 on Jun 28, 2026 . |
| FY2022 | 505 | Vested on Jun 21, 2025 . |
Employment Terms
| Provision | Terms |
|---|---|
| Employment agreements | La‑Z‑Boy does not provide employment agreements to NEOs . |
| Clawback policy | Clawback on performance‑based compensation; caps on incentives to mitigate risk . |
| Severance (non‑CIC) | Under severance plan: cash severance; example estimated payment for Linz $760,585 in involuntary termination (other than for cause) . |
| Change‑in‑Control (CIC) | Double‑trigger; for non‑CEO NEOs, 2x base salary + 2x average prior‑3‑year bonus; continuation of medical/dental for 2 years; “best‑net” approach for excise taxes (no gross‑ups); auto‑renewal; CIC agreement extends 24 months upon change . |
| CIC equity treatment | PBUs convert to time‑based at transaction on prorated performance; if terminated without cause or for good reason within 2 years post‑transaction, all PBUs fully vest; full accelerated vesting of options/RS/RSUs for grants made beginning FY2023 upon qualifying termination post‑CIC . |
| Estimated CIC payout example | Total incremental pay modeled at $3,202,239 for Linz (includes salary multiple, bonus multiple, accelerated equity, benefits), assuming event on Apr 26, 2025 with stock price $38.95 . |
Performance & Track Record
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Company TSR – $100 initial investment (La‑Z‑Boy) | $207.10 | $128.27 | $143.95 | $169.85 | $203.90 |
| Peer Group TSR – $100 initial investment | $250.51 | $174.70 | $172.75 | $184.06 | $192.81 |
| Net Income ($000) | $106,461 | $150,017 | $150,664 | $122,626 | $99,556 |
| Sales ($000) | $1,734,244 | $2,356,811 | $2,349,433 | $2,047,027 | $2,109,207 |
| MIP payout (% of target) | 150% | 144% | 131% | 92% | 103% |
Notable executive transitions: Linz appointed President, Wholesale Brands (Oct 13, 2025), with remit over merchandising, wholesale sales, and consolidated digital transformation across La‑Z‑Boy and Joybird to enhance omni‑channel capabilities . The FY2025 bonus outcomes reflected above‑target sales and below‑target operating margin .
Compensation Structure & Grants Detail
| Grant Type | Grant Date | Shares/Units | Fair Value ($) | Terms |
|---|---|---|---|---|
| RSUs (FY2025) | Jun 24, 2024 | 6,732 | 255,749 | Time‑based; 25% vest annually on Jun 24, 2025–2028 . |
| PSUs (FY2025) | Jun 24, 2024 | Target 6,732; Max 13,464 | 303,815 | Mix of financial goals and rTSR; earned tranches vest Apr 24, 2027 (FY2025) and Apr 25, 2026 (FY2024 carryover) . |
| Outstanding RSUs | Various FY2023–FY2025 | 16,229 unvested; MV $632,120 | — | See vest schedules above . |
| Outstanding PSUs (earned & unvested) | FY2024 & FY2025 | 4,749 total (1,300 FY2025; 3,449 FY2024) | Payout value $917,428 shown | Vest Apr 24, 2027 and Apr 25, 2026 . |
| Options (exercisable) | FY2020–FY2023 | See option table | — | Exercise prices $24.41–$37.93; expirations 2029–2032; remaining unvested from FY2023 vests on Jun 28, 2025/2026 . |
Governance, Policies, and Shareholder Feedback
- Compensation Committee members: Rebecca L. O’Grady (Chair), Sarah M. Gallagher, James P. Hackett, Michael T. Lawton .
- Key practices: pay‑for‑performance emphasis; independent consultant (FW Cook); clawbacks; double‑trigger CIC; prohibition of hedging/pledging/short sales; no option repricing; no excise tax gross‑ups .
- Say‑on‑pay approval ~97% at 2024 AGM; program retained without changes given shareholder support .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited; none of the reported shares are pledged, reducing misalignment risk .
- Option repricing: Prohibited without shareholder approval .
- Clawback: Policy in place on performance‑based pay .
- Related party transactions: None requiring disclosure since FY2025 start per policy and annual attestation .
Equity Ownership & Insider Selling Pressure Timeline
- Near‑term vest events potentially increasing liquidity/sale windows:
- RSUs: Jun 24, 2026/2027/2028 (FY2025 grant) ; Jun 26, 2026/2027 (FY2024 grant) ; Jun 28, 2026 (FY2023 grant) .
- PSUs: Apr 25, 2026; Apr 24, 2027 (earned tranches) .
- Options: FY2023 unvested halves on Jun 28, 2025/2026; remaining tranches now vested or vest by Jun 28, 2026 .
- Beneficial ownership gives visibility that short‑term selling would be from vesting settlements rather than large pledged positions; guidelines and prohibition of pledging mitigate forced‑sale risk .
Employment Terms – Estimated Economics
| Scenario (as of Apr 26, 2025) | Base Salary Multiple | Bonus Multiple | Accelerated Equity | Benefits/Other | Severance Payment | Total Incremental Pay |
|---|---|---|---|---|---|---|
| Change‑in‑Control (double‑trigger) | 2× salary ($958,000) | 2× avg MIP ($563,171) | Options $93,990; RS/RSUs $632,120; PSUs $943,720 | Broad‑based benefits $11,238 | — | $3,202,239 total . |
| Involuntary Termination (non‑CIC) | — | — | — | Broad‑based benefits $5,619 | $760,585 | $766,204 total . |
| Disability | — | — | Options $93,990; RS/RSUs $632,120; PSUs $184,974 | — | — | $911,084 total . |
| Death | — | — | Options $93,990; RS/RSUs $632,120; PSUs $184,974; MIP paid per policy after fiscal year | — | — | $911,084 total . |
Notes: CIC agreements auto‑renew; best‑net excise method; full accelerated vesting under qualifying post‑CIC termination for FY2023+ awards .
Investment Implications
- Alignment: Linz’s pay mix is heavily equity‑linked (RSUs/PSUs) with clear vesting cadences and PSU metrics tied to financial performance and rTSR, supporting alignment with long‑term shareholder outcomes . The prohibition on hedging/pledging and 3× salary ownership guideline further reduces misalignment risk .
- Retention: Multi‑year RSU/PSU schedules (through FY2028) and CIC double‑trigger protection point to moderate retention strength; non‑CIC severance is modest relative to total equity, suggesting equity is the primary retention lever .
- Selling pressure: Watch vest dates in late June (24/26/28) and late April (24/25) for potential incremental insider sales from RSU/PSU settlements; absence of pledging and moderate option exposure limit forced‑sale risks .
- Execution risk: Transition to President, Wholesale Brands centralizes digital transformation with merchandising and wholesale sales—key to omni‑channel optimization. Track subsequent Retail/Wholesale KPIs and FY2026–FY2027 PSU attainment against sales/TSR hurdles to gauge management execution quality .