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Richard Hallé

Chief Financial Officer at Natural Grocers by Vitamin Cottage
Executive

About Richard Hallé

Richard Hallé, age 60, is Chief Financial Officer of Natural Grocers by Vitamin Cottage (NGVC) effective January 1, 2025; he previously served on NGVC’s Board and Audit Committee from 2012 to October 2024, and on its Compensation Committee from August 2020 to October 2024 . Prior roles include Managing Director at Alvarez & Marsal’s Private Equity Performance Improvement Group (Mar 2023–Oct 2024), CFO of Vivial Inc. (2011–2021), CFO/Secretary of DTN Holding Company (2003–2008), and Managing Director at FTI Consulting (2002–2003) . NGVC’s pay-versus-performance data show strong recent performance: TSR rose from $98.68 on a $100 base in FY2022 to $303.80 in FY2024, while net income increased from $21,365k (FY2022) to $33,935k (FY2024) . He commenced interim employment November 4, 2024 to facilitate a CFO transition and resigned from the Board and committees on October 31, 2024; there is no family relationship with NGVC executives and no related-party transactions for him under Item 404(a) .

Past Roles

OrganizationRoleYearsStrategic impact
Natural Grocers by Vitamin Cottage, Inc.CFO (appointed)Jan 1, 2025–presentOversees finance, accounting, FP&A, IR, PMO, internal audit, AP, tax, payroll/benefits
Natural Grocers by Vitamin Cottage, Inc.CFO appointee (interim employment)Nov 4, 2024–Dec 31, 2024Transition support ahead of CFO appointment
Natural Grocers by Vitamin Cottage, Inc.Director; Audit Committee member2012–Oct 2024Governance, financial reporting oversight
Natural Grocers by Vitamin Cottage, Inc.Compensation Committee memberAug 2020–Oct 2024Executive compensation oversight

External Roles

OrganizationRoleYearsStrategic impact
Alvarez & Marsal Private Equity Performance Improvement GroupManaging DirectorMar 2023–Oct 2024Performance improvement for PE portfolio companies
Vivial Inc.Chief Financial Officer2011–2021Led accounting, treasury, tax, planning, forecasting, budgeting, financial reporting
DTN Holding Company, Inc.Chief Financial Officer & Secretary2003–2008Finance leadership, corporate secretary responsibilities
FTI Consulting, Inc.Managing Director2002–2003Developed business and finance strategies

Fixed Compensation

ComponentAmountTermsEvidence
Base salary (CFO)$618,500Annual; effective with appointment
Cash hiring bonus$202,500One-time hiring bonus
Fully vested stock grant7,500 sharesGranted at hire; fully vested
Director cash fees (FY2024)$50,000$40k base + $5k audit + $5k comp committee

Performance Compensation

IncentiveMetric(s)WeightingTargetActual/PayoutVestingEvidence
Annual discretionary cash bonus (CFO)Not specifiedN/AUp to 50% of base salaryDiscretionary, based on performanceCash; annual
Long-term equity (RSUs)Time-based; no performance metricsN/A200,000 RSUs100% cliff vestVest in full on Nov 4, 2029; accelerate on Change in Control or Corporate Transaction if employed at event

Equity Ownership & Alignment

ItemDetailEvidence
Total beneficial ownership (Jan 13, 2025)67,836 shares; less than 1% of outstanding
Shares outstanding (record date)22,931,226
RSUs vesting ≤60 days (director grant)3,736 RSUs vest by Mar 6, 2025
New RSU grant (CFO)200,000 RSUs; 100% cliff on Nov 4, 2029; single-trigger acceleration on Change in Control or Corporate Transaction if employed at event
PledgingNone of the shares beneficially owned by named officers/directors were pledged
HedgingPermitted only with pre-clearance per Insider Trading Policy
Ownership guidelines (NEOs)No specific stock ownership requirements or guidelines for NEOs
Director ownership guidelines3x annual cash retainer within 5 years of initial election (applies to independent directors; Hallé resigned Oct 31, 2024)

Vesting Schedule Details

GrantGrant DateAmountVesting Date(s)Acceleration TermsEvidence
Director RSUs (FY2024 annual grant)Mar 6, 20243,737Mar 6, 2025None specified beyond standard service condition
CFO RSUsNov 4, 2024200,000Nov 4, 2029 (100% cliff)Immediate full vest on Change in Control or Corporate Transaction if employed at event
Hiring stock grant (fully vested)Nov 4, 20247,500ImmediateN/A

Employment Terms

  • At-will employment; either party may terminate at any time, with or without cause .
  • Base salary $618,500; annual discretionary bonus opportunity up to 50% of base; benefits commensurate with title and salary band .
  • Equity: 7,500 fully vested shares; 200,000 RSUs with 5-year cliff vest; single-trigger acceleration on Change in Control or Corporate Transaction if employed at event .
  • No severance or change-in-control cash multiples disclosed; Company states no severance agreements for NEOs as of FY2024 .
  • Clawback/recoupment policy adopted to comply with Exchange Act Section 10D and NYSE listing standards (restatement-based recoveries) .
  • No NEO stock ownership guidelines; hedging requires pre-clearance; no pledging disclosed in beneficial ownership table .
  • No non-compete, non-solicit, garden leave, or consulting arrangements disclosed in the offer letter or proxy .

Performance & Track Record

MetricFY2022FY2023FY2024
TSR value of $100 initial investment$98.68 $122.28 $303.80
Net Income ($ thousands)$21,365 $23,243 $33,935
  • Management characterized Hallé’s prior experience as having a strong track record of value creation, with deep corporate finance, accounting, operations, and reporting expertise .
  • Board/committee service: Hallé served on Audit and Compensation Committees; each committee member attended at least 75% of meetings in FY2024 .

Compensation Committee Analysis

  • Compensation Committee members: Heather Isely (Chair), Kemper Isely, Edward Cerkovnik, Sandra Buffa; Hallé served prior to Oct 2024 and did not participate in decisions related to his appointment .
  • Independent consultant FW Cook engaged for FY2023 study; no consultant used for FY2024 decisions; FY2024 decisions emphasized base salary and discretionary cash bonuses .
  • Say-on-pay: 2024 meeting approved FY2023 NEO compensation; future say-on-pay votes every three years with next expected in 2027 .

Related Party Transactions

  • Hallé is not party to any transaction requiring disclosure under Item 404(a) (confirmed at appointment) .
  • NGVC operates as a controlled company under NYSE rules due to Isely family ownership; related-party leases and vendor arrangements are reviewed/approved by the Audit Committee under formal policies (context for governance) .

Investment Implications

  • Alignment: Hallé’s equity package is significant (200k RSUs) but entirely time-based with single-trigger acceleration on Change in Control/Corporate Transaction, which creates potential event-driven supply but limited near-term selling pressure beyond 3,737 director RSUs vesting Mar 6, 2025; no pledging and clawback policy mitigate governance risk .
  • Pay-for-performance: Annual bonus is discretionary without disclosed quantitative metrics; absence of PSUs suggests lower explicit linkage to TSR/financial targets, but NGVC’s recent TSR/net income improvement provides supportive backdrop for incentive outcomes .
  • Retention: Five-year cliff RSU structure and at-will status indicate strong retention incentive tied to tenure; lack of severance/cash CoC benefits reduces change-in-control windfall risk but single-trigger RSU acceleration increases equity realization upon corporate events .
  • Governance: Prior committee tenure (audit/compensation) and no related-party ties support credibility; controlled company status persists, so broader governance dynamics should be monitored .