David McGlinchey
Chief Development Officer at SFM
Executive
About David McGlinchey
David M. McGlinchey (age 52) is Sprouts Farmers Market’s Chief Development Officer (formerly Chief Strategy Officer), serving in the role since April 2022 and with Sprouts since July 2017. He oversees new store format development, real estate site selection, store planning, and portfolio optimization. McGlinchey holds a B.S. in Economics and Finance and an M.B.A. from Bentley University’s McCallum Graduate School of Business . Company performance during his tenure has strengthened: FY revenue rose from $4.66B in 2017 to $7.72B in 2024, with EBITDA increasing from ~$324M to ~$645M and EBIT from ~$227M to ~$505M (see table; values retrieved from S&P Global). Sprouts’ TSR rose to 658.64 on a $100 base by 2024, while Plan EBIT reached $504.5M in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sprouts Farmers Market | Chief Development Officer (formerly Chief Strategy Officer) | Apr 2022–present | Leads store format development, site selection, store planning, portfolio optimization |
| Sprouts Farmers Market | Chief Format Officer | Feb 2020–Apr 2022 | Led new store format strategy and implementation |
| Sprouts Farmers Market | Chief Merchandising Officer | Aug 2018–Feb 2020 | Oversaw merchandising strategy and execution |
| Sprouts Farmers Market | SVP, Merchandising Services | Jul 2017–Aug 2018 | Led merchandising support functions |
| Sears Holdings Corporation | VP & Chief Grocery Merchant | Sep 2013–Dec 2016 | Led grocery merchandising for a national retailer |
| Supervalu (Shaw’s & Star Market) | SVP, Merchandising & Marketing | Mar 2010–Apr 2013 | Led merchandising and marketing for banners |
| Stop & Shop/Giant Food | Roles incl. SVP Merchandising Support; VP Grocery Merchandising; Director Dry Grocery; Category Manager | ~1996–2010 | Progressive leadership across merchandising support and grocery categories |
External Roles
None disclosed for McGlinchey in the proxy statements .
Fixed Compensation
- Sprouts structures executive pay with base salary targeted near market median; target total direct compensation is calibrated to peer medians, with mix of fixed and variable pay .
- Executives participate in standard health, welfare, and 401(k) benefits; limited perquisites (company-paid insurance premiums) .
Performance Compensation
Annual Incentive (Cash)
| Metric | Weighting | Threshold | Target | Maximum | 2024 Actual | Payout vs Target |
|---|---|---|---|---|---|---|
| Plan EBIT | 75% | 95% of target ($398.7M) | $419.7M | 115% of target ($503.6M) | $504.5M | 300% |
| Comparable Store Sales | 25% | 97.5% of target | 3.4% | 8.6% | 7.6% | 264% |
| Total Weighted Payout | — | — | — | — | — | 291% of Target Bonus |
Notes:
- No bonus pays out unless either Plan EBIT ≥95% of target or comps ≥97.5% of target. Maximum payouts align to 115% Plan EBIT and 105% comps .
Long-Term Incentives (Equity) – Design and Vesting
| Award Type | 2024 Weighting | Vesting / Performance Conditions |
|---|---|---|
| Performance Shares (PSUs) | 50% | 3-year performance period; earned based on achieving the 2026 Plan EBIT goal; threshold at 90% of target; up to 200% of target shares at 115% of Plan EBIT; cliff vest on the 3rd anniversary if earned |
| RSUs (time-based) | 25% | Vest one-third annually over 3 years |
| Stock Options (time-based) | 25% | 7-year term; exercise price at grant; vest one-third annually over 3 years |
- 2025 change: performance awards granted in the form of PSUs; certain pro rata accelerated vesting upon retirement if age + service ≥68, age ≥55, and ≥3 years of service .
Equity Ownership & Alignment
Reported Insider Holdings and Trading (Form 4)
| Date (Trade) | Type | Shares | Price ($) | Reported Direct Shares After | Source |
|---|---|---|---|---|---|
| 2025-03-20 | Sale | 298 | 139.43 | 33,876 | SEC Form 4 XML |
| 2025-03-17 | Sale | 5,085 | — | — | (https://www.secform4.com/insider-trading/1575515.htm) |
| 2024-05-09 | Sale + Option Exercise | 12,219 | 74.01 | 25,007 | (http://openinsider.com/SFM) |
| 2024-03-18 | Sale | 828 | 63.20 | — | (http://openinsider.com/SFM) |
| 2024-03-15 | Sale | 404 | — | — | (http://openinsider.com/SFM) |
| 2023-12-07 | Sale | 109,881 | 32.28 | 36,880 | (http://openinsider.com/SFM) |
- Ownership guidelines: other executive officers must maintain beneficial ownership equal in market value to at least one times base salary within 5 years of appointment (updated in 2024) . Individual compliance status for McGlinchey is not disclosed.
- Hedging/pledging: prohibited without Chief Legal Officer approval per insider trading policy .
Employment Terms
- Employment agreements: Sprouts states NEOs generally have no employment contracts; severance governed by the Executive Severance and Change in Control Plan (Konat is covered by a separate letter agreement; no individualized agreement disclosed for McGlinchey) .
- Severance (outside CoC): CEO—2 years base + COBRA + prior two bonuses + pro-rated current-year bonus; other executive officers—1 year base + COBRA .
- Change-in-control (double trigger): CEO—3 years base + COBRA + three prior target bonuses; other executive officers—2 years base + COBRA + target bonus; equity accelerates if not assumed by acquirer or upon qualifying termination within 24 months of CoC .
- Clawback: Compensation Recoupment Policy adopted Nov 2023 pursuant to Rule 10D-1; covers current and former officers irrespective of misconduct .
Company Performance During McGlinchey’s Tenure
| Metric | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|---|---|---|
| Revenues ($) | 4,664,612,000 | 5,207,336,000 | 5,634,835,000 | 6,468,759,000 | 6,099,869,000 | 6,404,223,000 | 6,837,384,000 | 7,719,290,000 |
| EBITDA ($) | 323,757,000* | 345,260,000* | 344,264,000* | 518,172,000* | 464,379,000* | 493,493,000* | 518,591,000* | 645,067,000* |
| EBIT ($) | 226,770,000* | 234,511,000* | 221,460,000* | 391,665,000 | 338,838,000* | 366,426,000* | 386,680,000* | 504,903,000* |
Values retrieved from S&P Global.
Notes: FY 2024 operational highlights include net sales of $7.7B (+13% YoY), comps +7.6%, and EBIT $504.5M .
Investment Implications
- Alignment and incentives: McGlinchey’s pay design follows Sprouts’ heavy weighting to performance—annual bonuses tied 75% to Plan EBIT and 25% to comps, plus 3-year PSUs on Plan EBIT—supporting pay-for-performance and profitability focus .
- Retention risk: Repeated insider sales (notably 109,881 shares in Dec 2023) point to periodic liquidity events; however standard executive ownership guidelines and prohibition of hedging/pledging without approval temper misalignment risk .
- Change-in-control protection: Double-trigger severance and equity vesting terms are consistent with market practice; absence of individual employment contracts suggests reliance on company-wide plans for retention economics .
- Execution track record: Multi-year revenue and EBIT expansion, plus outsized TSR through 2024, indicate strong strategy execution in store development and format—key areas under McGlinchey’s remit .
Data gaps: Individual base salary, target bonus %, and grant-level equity values for McGlinchey were not disclosed in the proxy. The analysis relies on company-wide compensation design and governance disclosures – –.