Kevin McLain
Ollie's Bargain Outlet HoldingsAbout Kevin McLain
Kevin McLain, 59, is Senior Vice President and General Merchandise Manager at Ollie’s, a role he has held since May 2014 after merchandising leadership roles at Variety Wholesalers, Anna’s Linens, and Target . His annual cash incentive is driven solely by Company Adjusted EBITDA; in Fiscal 2024 Ollie’s achieved $312.7 million vs a $306.2 million target (102.1%), resulting in a $202,596 payout for McLain . Long-term equity grants are split between RSUs and stock options vesting ratably over four years, aligning pay with multi-year performance and retention . As of the 2025 record date, McLain beneficially owned 21,431 shares (12,814 direct plus 8,617 options exercisable within 60 days), less than 1% of shares outstanding; hedging and pledging are prohibited and NEOs either met or were on track to meet stock ownership guidelines as of February 1, 2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Variety Wholesalers | Senior Vice President, General Merchandise Manager of Hardlines | 2011–2014 | Senior merchandising leadership for hardlines |
| Anna’s Linens | Vice President, Merchandise Manager | 1997–2011 | Merchandising leadership at home goods retailer |
| Target Corporation | Various managerial roles | Pre-1997 | Progressive merchandising/managerial experience |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | 304,423 | 355,962 | 353,077 |
| All Other Compensation ($) | 16,372 | 18,230 | 26,040 |
| Auto Allowance ($) | 10,000 | 10,000 | 10,000 |
| Group Term Life ($) | 1,917 | 1,917 | 1,917 |
| 401(k) Match ($) | 14,123 | 14,123 | 14,123 |
| Base Salary Level | As of 2/3/2024 ($) | As of 2/1/2025 ($) |
|---|---|---|
| Kevin McLain | 345,000 | 355,000 |
Performance Compensation
| Component | Metric | Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|---|
| Annual Incentive (FY 2024) | Company Adjusted EBITDA | Single metric (plan-based) | $306.2M Target Adjusted EBITDA | $312.7M (102.1% of target) | $202,596 | Annual cash bonus; thresholds: 0% (min), 50% (target), 100% (max) of base |
| Equity Grants (FY 2024) | RSUs (#) | Options (#) | Exercise Price ($/sh) | Grant Date | Grant Date Fair Value ($) |
|---|---|---|---|---|---|
| Plan-Based Awards | 3,368 | 6,462 | 74.23 | 4/1/2024 | 500,021 |
Equity vesting: RSUs and options vest 25% per year over four years, subject to continued service; options only have value above the grant exercise price .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (Record Date) | 21,431 shares; includes 12,814 direct + 8,617 options exercisable or vesting within 60 days; <1% of outstanding |
| Outstanding Shares | 61,407,163 |
| Unvested RSUs (2/1/2025) | 632 (2021), 3,037 (2022), 3,234 (2023), 3,368 (2024); market values $70,474; $338,656; $360,623; $375,566 (at $111.51 close on 1/31/2025) |
| Options Outstanding (by grant) | 7,822 ex @ $79.89 exp 3/20/2029 (2019); 4,799 ex + 1,600 unex @ $86.03 exp 3/22/2031 (2021); 6,513 unex @ $43.21 exp 3/25/2032 (2022); 6,436 unex @ $57.98 exp 3/23/2033 (2023); 6,462 unex @ $74.23 exp 4/1/2034 (2024) |
| Hedging/Pledging | Prohibited for all associates and directors |
| Ownership Guidelines | Officers/directors subject to stock ownership guidelines; as of 2/1/2025 each NEO met or was on track per Compensation Committee |
Employment Terms
| Provision | Key Term |
|---|---|
| Employment Agreement | Original May 2014; amended 2015 and April 11, 2021 (“McLain Agreement”) |
| Base Salary | Minimum annual base salary, reviewed annually by Compensation Committee/Board |
| Annual Bonus Structure | EBITDA-based; max 100% of base; target 50% of base; threshold 0%; Committee may adjust with McLain’s consent |
| Termination – For Cause/Disability/Death/Resignation (no good reason) | Pay any earned but unpaid base salary through termination date |
| Termination – Without Cause or Resignation for Good Reason | 12 months of base salary post-termination or until new employment, whichever earlier; subject to release and compliance with restrictive covenants |
| Restrictive Covenants | Confidentiality; proprietary rights (extend six months post-employment); non-disparagement; non-solicitation; non-competition for one year post-employment |
| Equity Plan Acceleration | RSUs/options generally forfeit upon termination, but acceleration may occur under certain circumstances per Plan (see “Potential Payments Upon Termination or Change in Control”) |
| Clawback Policy | Dodd-Frank/SEC/Nasdaq-compliant recoupment of erroneously awarded incentive comp upon accounting restatement |
Compensation Mix (Multi-Year)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Stock Awards ($) | 262,501 | 250,010 | 250,007 |
| Option Awards ($) | 262,494 | 249,994 | 250,015 |
| Non-Equity Incentive ($) | — | 228,384 | 202,596 |
| Total Compensation ($) | 845,790 | 1,102,580 | 1,081,735 |
Outstanding Equity Awards (Detail at FY 2024 Year-End)
| Grant Date | Options Exercisable (#) | Options Unexercisable (#) | Exercise Price ($) | Expiration | Unvested RSUs (#) | RSU Market Value ($) |
|---|---|---|---|---|---|---|
| 3/20/2019 | 7,822 | — | 79.89 | 3/20/2029 | — | — |
| 3/22/2021 | 4,799 | 1,600 | 86.03 | 3/22/2031 | 632 | 70,474 |
| 3/25/2022 | — | 6,513 | 43.21 | 3/25/2032 | 3,037 | 338,656 |
| 3/23/2023 | — | 6,436 | 57.98 | 3/23/2033 | 3,234 | 360,623 |
| 4/1/2024 | — | 6,462 | 74.23 | 4/1/2034 | 3,368 | 375,566 |
Valuation uses $111.51 closing price on 1/31/2025, last trading day of FY 2024 . Options/RSUs vest 25% annually, subject to service .
Compensation Committee Practices and Policies
- Equity grant cadence, pricing, and timing controls (no grants proximate to filings with material nonpublic information; exercise price equals grant-date close) .
- Stock ownership guidelines and annual progress assessment; officers encouraged to retain 50% of net shares from RSU vesting and option exercises until guidelines met .
- Clawback policy effective 12/1/2023; administered by Compensation Committee .
- Use of Pearl Meyer data to calibrate thresholds and base salaries for NEOs in FY 2024 .
Investment Implications
- Pay-for-performance: McLain’s annual bonus is tightly linked to Adjusted EBITDA with clear threshold/target/max guardrails; FY 2024 payout reflects slight outperformance relative to target (102.1%), suggesting alignment with operational execution .
- Retention and selling pressure: Four-year ratable vesting of annual RSUs/options creates consistent vesting events; combined with a prohibition on hedging/pledging and ownership guidelines, this structure supports alignment while limiting adverse trading signals from risk management transactions .
- Ownership: Beneficial ownership is modest versus float (21,431 shares, <1%), but ongoing equity grants and guidelines mitigate alignment concerns; monitor future Form 4s around annual vesting anniversaries for potential sales tied to tax withholding or diversification .
- Contractual economics: A 12-month base-salary severance for a without-cause or good-reason separation reduces near-term retention risk; non-compete/non-solicit provisions (one year) further stabilize merchandising leadership continuity .
- Equity mix and leverage: Balanced RSU/option mix maintains sensitivity to long-term stock performance while delivering retention value; option strike laddering across 2019–2024 vintages provides varying intrinsic leverage to share price outcomes over multi-year horizons .