Tarun Lal
Dave & Buster's EntertainmentAbout Tarun Lal
Tarun Lal, 56, was appointed Chief Executive Officer and a member of the Board of Directors of Dave & Buster’s Entertainment, Inc. effective July 14, 2025 . He is a seasoned global operator with 25+ years at Yum! Brands, most recently serving as President of KFC U.S., with prior roles including Global COO for KFC and Managing Director overseeing KFC across the Middle East, Turkey, Africa, India and Pakistan . His compensation is explicitly tied to multi-year performance metrics, including achieving 2027 Adjusted EBITDA of $600–$675 million, average same-store sales growth of 3–5%, and relative TSR vs. the S&P 1500 Hotels, Restaurants & Leisure Index, as well as stock-price hurdles (2x and 3x the grant price by Feb 1, 2028) ; he has publicly reiterated the $675 million Adjusted EBITDA target as a near-term goal post-appointment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Yum! Brands (KFC) | President, KFC U.S. | 25+ years at Yum!; specific role years not disclosed | Led all aspects of KFC U.S. operations |
| Yum! Brands (KFC) | Global COO, KFC | 25+ years at Yum!; specific role years not disclosed | Drove global brand operations and expansion initiatives |
| Yum! Brands (KFC) | Managing Director, KFC METAI&P (Middle East, Turkey, Africa, India & Pakistan) | 25+ years at Yum!; specific role years not disclosed | Led major brand expansions, championed digital innovation, delivered growth across complex markets |
External Roles
No other public company directorships were disclosed in the appointment 8‑K or accompanying press release .
Fixed Compensation
| Component | Detail |
|---|---|
| Base Salary | $800,000 annualized |
| Target Annual Bonus | 100% of base salary (prorated for FY2025) |
| Long-Term Incentive Plan (LTIP) Target | 125% of base salary |
| Benefits | Eligible to participate in company benefit plans on same basis as other senior executives |
Performance Compensation
PSU Awards (Grant date: July 15, 2025)
| Award | Shares Granted | Performance Metric(s) | Target/Range | Performance Period | Vesting After Earned |
|---|---|---|---|---|---|
| Single Goal PSUs | 124,766 | Same-store sales growth | ≥3% positive SSS for four consecutive quarters | Through Feb 1, 2028 | Ratably over 2 years, subject to continued employment |
| Multiple Goal PSUs | 124,766 | 2027 Adjusted EBITDA; Avg SSS growth; Relative TSR modifier | EBITDA: $600–$675mm; SSS: 3–5%; TSR vs S&P 1500 Hotels, Restaurants & Leisure adjusts earned PSUs | Through Feb 1, 2028 | Earned based on results; vest per award agreement, subject to continued employment |
Notes: Mr. Lal emphasized his alignment to a near-term achievement of $675 million Adjusted EBITDA on the Q2 FY2026 earnings call .
Stock Options (Grant date: July 15, 2025)
| Option Type | Shares | Exercise Price | Earn/Trigger Condition | Vesting Terms |
|---|---|---|---|---|
| Time-Based Options | 124,766 | $32.06 (grant price) | N/A (service-based) | Vests in equal annual installments over 3 years, subject to continued employment |
| Stock-Price Options (2x) | 124,766 | $32.06 (grant price) | Earns in full if 60-day trailing VWAP ≥ 2× grant price before Feb 1, 2028 | 100% of earned options vest/exercisable during the period from first to second anniversary of the attainment date, subject to terms |
| Stock-Price Options (3x) | 83,177 | 1.5× grant price | Earns in full if 60-day trailing VWAP ≥ 3× grant price before Feb 1, 2028 | 100% of earned options vest/exercisable during the period from first to second anniversary of the attainment date, subject to terms |
| Investment-Based Options | 31,191 | $32.06 (grant price) | Conditioned on Mr. Lal purchasing $1,000,000 of PLAY shares by Dec 31, 2026 | Vests over 3 years if purchase condition met and continued employment |
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Required Share Purchase | Must buy $1,000,000 of PLAY shares by Dec 31, 2026 to earn vesting on investment-based options |
| Stock Ownership Guidelines | Company maintains stock ownership guidelines for executives |
| Hedging/Pledging | Hedging and pledging of company stock by executives/directors prohibited |
| Clawback | Variable compensation subject to clawback policy |
| Equity Plan Governance | 2025 Plan prohibits single-trigger vesting on change in control and option repricing; no excise tax gross-ups; no dividends on unvested awards |
| Share Pool/Overhang Context | Overhang was 4.3% for year ended Dec 31, 2024 vs. peer median 13.2% |
Note: Beneficial ownership and vested vs. unvested breakdown for Mr. Lal were not disclosed in the cited filings; equity awards and vesting mechanics above set expected future supply windows .
Employment Terms
| Term | Detail |
|---|---|
| Effective Date & Roles | Appointed CEO and Director effective July 14, 2025 |
| Severance (Company without cause / Good reason) | 24 months of base salary; unpaid prior-year bonus (if any) based on actual results; pro‑rata current-year bonus based on actual results; continued medical premiums for 18 months (subject to release and covenants) |
| Non-Compete/Non-Solicit | Up to two years post-termination |
| Indemnification | Standard officer indemnity agreement |
| Change-in-Control Treatment | Company states use of double-trigger change-of-control agreements; 2025 Plan prohibits single-trigger equity vesting |
| Inducement Plan (for CEO awards) | Adopted July 14, 2025; up to 2,000,000 shares; no ISOs; terms align with 2025 Omnibus Incentive Plan; 10-year term unless earlier terminated |
Additional Context from Q2 FY2026 Earnings Call (alignment to plan execution)
- Mr. Lal reiterated that his compensation is tied to achieving $675 million in Adjusted EBITDA in the near term .
- Strategic initiatives under his leadership include season pass programs, menu refresh, and arcade-floor enhancements aimed at driving guest traffic and check growth .
Investment Implications
- Strong pay-for-performance orientation: A substantial portion of Mr. Lal’s package is performance-contingent (PSUs tied to 2027 Adjusted EBITDA and same-store sales, and option grants tied to 2x/3x stock-price hurdles), aligning upside with shareholders if execution delivers EBITDA and SSS expansion and peer-relative TSR outperformance .
- Retention and insider supply timing: Time-based options vest annually over three years from the July 15, 2025 grant; earned price-hurdle options vest between the first and second anniversaries of attainment; PSUs vest over two years once earned—together implying potential selling windows in 2026–2028, conditional on employment and performance triggers .
- Alignment safeguards: Prohibition on hedging/pledging, clawback policy, and double-trigger CIC design reduce misalignment and limit single-trigger windfalls; the $1,000,000 open‑market share purchase requirement further increases skin-in-the-game .
- Severance risk manageable: Cash severance set at 24 months of base salary plus bonus construct, without excise tax gross‑ups, limiting downside for shareholders relative to richer CEO packages seen at peers .
- Execution bar visible: Public commitment to $675 million Adjusted EBITDA creates a clear measuring stick for incentive realization and equity value creation; failure to deliver would likely reduce realized pay given PSU/option structures .