Francisco Lopez
RYDER SYSTEMAbout Francisco Lopez
Executive Vice President and Chief Human Resources Officer (CHRO) at Ryder System, Inc. since 2018; previously CHRO (2016–2018) and Senior Vice President, Global Human Resources Operations (2013–2016). Age 50. Lopez’s tenure aligns with strong corporate execution: FY2024 total revenue $12.6B (+7% YoY), operating revenue $10.3B (+8%), comparable EBITDA $2.8B, net earnings $489M; three-year TSR of 106%, materially above S&P 400 MidCap (+15%) and Dow Jones Transportation (+1%) benchmarks .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ryder System, Inc. | Senior Vice President, Global Human Resources Operations | 2013–2016 | Led global HR operations through growth and transformation across FMS, SCS, DTS |
| Ryder System, Inc. | Chief Human Resources Officer | 2016–2018 | Elevated HR strategy, talent, and systems supporting network scale and acquisitions |
| Ryder System, Inc. | Executive Vice President & CHRO | 2018–Present | Oversees enterprise human capital amid tight labor markets, wage inflation, and safety/compliance expansion |
External Roles
No public company board or external roles disclosed in Ryder’s filings for Lopez. Skip if not disclosed.
Fixed Compensation
Not disclosed for Lopez in the 2025 proxy (he is not a named executive officer). Ryder’s executive compensation design benchmarks base salary annually based on market, responsibility, performance, and succession potential .
Performance Compensation
Company program context for executives (AIP & LTIP) to assess pay-for-performance alignment:
- Annual Incentive Plan (AIP) weights: Comparable EBITDA (CEO/corporate 60%), Operating Revenue (20%), Strategic Objectives (20%), with payout range 0–200% .
- 2024 AIP outcomes (CEO/corporate cohort) yielded an 80% weighted payout based on results vs targets .
| Performance Metric (in millions unless noted) | 2024 Threshold (50% payout) | 2024 Target (100%) | 2024 Max (200%) | Weight | 2024 Actual | 2024 Payout (% of Target) |
|---|---|---|---|---|---|---|
| RSI Comparable EBITDA | $2,633 | $2,926 | $3,014 | 60% | $2,776 | 74% |
| RSI Operating Revenue | $9,699 | $10,776 | $11,639 | 20% | $10,266 | 76% |
| CEO/Corporate Strategic Objectives | Inconsistent | Successful | Exceptional | 20% | Successful | 100% |
| Weighted Outcome | — | — | — | — | — | 80% |
- Long-Term Incentive Plan (LTIP): PBRSRs (60%) and TVRSRs (40%); PBRSR metrics equally weighted across three-year ROE, Strategic Revenue CAGR, and Free Cash Flow with a relative TSR modifier (+/−15%) capped at 200% total payout . The 2022–2024 PBRSR cycle paid at 200% after metric achievement and TSR modifier .
| PBRSR Metric (33.3% weight each) | Range | 2022–2024 Result | Payout |
|---|---|---|---|
| ROE (3-yr avg) | Threshold 11%; Target 15%; Max 18% | 21.5% | 200% |
| Strategic Revenue Growth (3-yr CAGR) | Threshold 3%; Target 6%; Max 9.5% | 13.1% | 200% |
| Free Cash Flow (3-yr avg) | Threshold ($750M); Target ($250M); Max $350M | $333.4M | 197% |
| TSR Modifier | −15% / −5% / +5% / +15% by peer percentile | First quartile (≥75th percentile) | Adjusted to 200% overall |
Governance features: double-trigger CIC in awards; robust clawbacks per SEC 954 and separate non-exec policy; prohibition of dividends on unvested PBRSRs/TVRSRs; no tax gross-ups; independent consultant (FW Cook) .
Equity Ownership & Alignment
- Insider transactions indicate periodic option exercises and sales around vesting/performance windows:
- Aug 1, 2024: Option exercise (strike $76.49) and sale of 12,730 shares; sale price reported as weighted average range $137.06–$144.40; the option had an original vest schedule (4,244 on 2/10/2018; 4,243 on 2/10/2019; 4,243 on 2/10/2020) and expiration 2/9/2027 .
- Feb 7, 2025: Stock award grant reported (Form 4) with grant-price disclosure format (0.00 typical for RSUs) .
- Post-transaction share balances were not disclosed in proxy tables for Lopez (not a named executive officer); beneficial ownership and vest/unvested breakdown for Lopez not available in DEF 14A .
- Alignment policies:
- Hedging and pledging prohibited for executive officers and directors .
- Stock ownership guidelines: CEO 6× salary; other NEOs 3× salary; all NEOs meet guidelines; guideline applicability to non-NEO executives (e.g., CHRO) not disclosed .
| Date | Transaction | Security | Shares | Price / Notes |
|---|---|---|---|---|
| 2024-08-01 | Option exercise & sale | Common + Option | 12,730 [cloudfront] | Exercise at $76.49; sale weighted avg $137.06–$144.40; Option expiry 2/9/2027; vest tranches 2018–2020 |
| 2025-02-07 | Stock award (grant) | RSU/stock award | N/A | Grant recorded on Form 4; typical grant price shows $0.00 per Form 4 format |
Employment Terms
- Severance architecture: Executive leadership team members (including NEOs) have individual severance agreements; other officers covered under Executive Severance Plan. Agreements include restrictive covenants (non-compete/non-solicit), change-of-control protections structured as double-trigger, and clawback/recoupment rights (including repayment if later cause is discovered) .
- Clawbacks/Recoupment: SEC 10D-compliant policy for Section 16 officers and a separate non-exec policy; covers incentive-based comp over three fiscal years preceding a restatement .
- No tax gross-ups; no option repricings; robust blackout and pre-clearance for executives under Insider Trading Policy .
Company Performance Context (during Lopez’s tenure)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Total Revenue ($B) | $11.783 | $12.636 |
| Operating Revenue ($B) | $9.497 | $10.266 |
| Comparable EBITDA ($B) | $2.665 | $2.776 |
| Net Earnings ($M) | $406 | $489 |
| Net Cash from Operations ($B) | $2.353 | $2.265 |
Additional highlights: Three-year TSR 106%; operating cash flow $2.3B; free cash flow $133M; acquisitions integrated (Cardinal Logistics and Impact Fulfillment Services) to expand SCS/DTS .
Risk Indicators & Red Flags (HR-relevant)
- Tight labor markets and higher wage/subcontract costs negatively impacted DTS & SCS earnings; sustained driver/technician shortages pose ongoing margin and execution risk .
- Insider trading controls: quarterly and event blackouts, pre-clearance for executives; pledging/hedging prohibited, reducing misalignment risk .
Compensation Peer Group & Say‑on‑Pay
- Relative TSR peers: 13-compensation peer group plus 12 additional performance peers (used for PBRSR TSR modifier) .
- Say‑on‑Pay support >95% in 2024, indicating broad investor approval of pay-for-performance design .
Investment Implications
- Alignment: Company’s heavy weighting to EBITDA and revenue in AIP, and ROE/CAGR/FCF in LTIP, ties executive rewards (including HR leadership cohorts) to profitable growth and capital efficiency; double-trigger CIC and clawbacks reduce misalignment and windfall risks .
- Selling pressure: Lopez’s Aug 2024 option exercise/sale aligns with a scheduled, in-the-money option maturity rather than discretionary selling; no pledging or hedging allowed, mitigating forced selling risk .
- Retention/execution: Persistent industry labor shortages elevate HR execution risk; Lopez’s role is central to talent acquisition, retention, and safety/compliance—key drivers of margin stability in DTS/SCS and maintenance efficiency in FMS .
- Data gaps: As a non-NEO, Lopez’s exact base/bonus/equity grant values aren’t disclosed; monitor ongoing Form 4s for award cadence and any 10b5‑1 plan adoption to gauge upcoming liquidity events .