Joseph Hurley
Chief Supply Chain Officer at SFM
Executive
About Joseph Hurley
Joseph Hurley is Chief Supply Chain Officer at Sprouts Farmers Market (SFM), age 58, appointed in March 2023 after serving as SVP of Supply Chain since April 2019; he oversees distributors, 3PLs, DCs, transportation, replenishment, and inventory management . He holds a B.A. in Economics from Virginia Military Institute and an M.S. in Business Administration from California University of Pennsylvania . Company performance relevant to his remit: FY2024 net sales were $7.7B (+13% YoY), comparable store sales grew 7.6%, and EBIT was $504.5M; the share repurchase authorization was expanded to $600M in May 2024 . Over the 2019–2024 window used in Pay vs. Performance, an initial $100 in SFM stock grew to $658.64, while net income reached $380.6M and Plan EBIT (Adjusted EBIT) was $504.5M .
Past Roles
| Organization | Role | Years | Strategic impact/responsibilities |
|---|---|---|---|
| Sprouts Farmers Market | SVP, Supply Chain | Apr 2019–Mar 2023 | Led end‑to‑end supply chain including DCs, transportation, replenishment, inventory; foundational for fresh distribution proximity goals . |
| Giant Eagle, Inc. | SVP, Supply Chain | Mar 2012–Apr 2019 | Senior leadership over retail grocery supply chain operations . |
| Giant Eagle, Inc. | VP, Distribution & Logistics | Jan 2010–Mar 2012 | Led distribution and logistics networks for the chain . |
| SuperValu, Inc. | Supply chain leadership roles | Prior to 2010 | Progressively senior roles in grocery supply chain . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Not disclosed | — | — | No external directorships or outside roles for Hurley are disclosed in SFM proxy filings . |
Fixed Compensation
- SFM targets base salaries near the market median for comparable roles; annual reviews consider performance, skills, experience, time in role, scope, and retention risk .
- Specific base salary or cash compensation for Joseph Hurley is not disclosed (he is not a named executive officer in FY2024) .
Performance Compensation
Annual Performance-Based Cash Bonus (Company Plan Design)
| Metric | Weighting | Threshold | Target | Maximum | 2024 Actual | Payout % of metric | Notes |
|---|---|---|---|---|---|---|---|
| Plan EBIT | 75% | $398.7M | $419.7M | $503.6M | $504.5M | 300% | Focuses on profitability and core business health (Adjusted EBIT basis; no further adjustments in 2024) . |
| Comparable store sales | 25% | 0.8% | 3.4% | 8.6% | 7.6% | 264% | Emphasizes productivity and strengthening core stores . |
| Resulting payout factor | — | — | — | — | — | 291% of Target Bonus | Aggregated for executive officers based on weights and outcomes . |
- Design: Execs have target bonus as % of base salary; payout can reach 300% of Target Bonus; 2024 payouts were 291% of Target Bonus for executive officers under the plan .
- Note: Individual Target Bonus percentages for Hurley are not disclosed .
Long-Term Equity Incentives (Grant Structure)
| Award type | 2024 weighting | Vesting/term | Performance basis |
|---|---|---|---|
| Performance Shares (PS) | 50% | Cliff vests ~3 years (Mar 2027) if 2026 Plan EBIT target achieved; 90% threshold; up to 200% of target at 115% of Plan EBIT . | Company Plan EBIT (Adjusted EBIT) over a 3‑year period; outcomes disclosed post‑period . |
| RSUs | 25% | 1/3 annually over 3 years . | Time‑based . |
| Stock Options | 25% | 1/3 annually over 3 years; 7‑year term; strike at grant closing price . | Time‑based; Black‑Scholes sizing . |
- Completed PS cycle: 2022 PS awards (based on FY2024 Plan EBIT) paid at 148% of target upon achieving $504.5M Plan EBIT .
- Retirement treatment (effective for 2025 grants): Pro‑rata accelerated vesting for PSUs/RSUs/options if age + years of service ≥68, age ≥55, and ≥3 years of service .
Equity Ownership & Alignment
- Stock ownership guidelines: CEO must maintain 5× salary; President/COO and CFO 3×; other executive officers 1× base salary; 5‑year compliance window; counts include outright shares, unvested RSUs, vested options in‑the‑money, and spouse/dependent holdings; exclude unvested PSAs/options .
- Hedging/pledging: Prohibited without Chief Legal Officer approval under insider trading policy .
- Clawback: Compensation Recoupment Policy (Rule 10D‑1 compliant) requires recovery of erroneously awarded incentive compensation after financial restatements, regardless of misconduct .
- Beneficial ownership: Joseph Hurley’s individual beneficial ownership is not listed in the Security Ownership table (which covers directors and NEOs as of Mar 24, 2025) .
Employment Terms
- Employment agreements: “None of our named executive officers have employment agreements”; Mr. Konat has a separate letter agreement. (Coverage of non‑NEO executives like Hurley is not specifically enumerated.) .
- Executive Severance & Change‑in‑Control Plan (for designated senior executives):
- Involuntary termination (no CIC): CEO—2 years base salary + 2 years COBRA reimbursement, aggregate prior two years’ annual bonuses, and prorated current‑year bonus; others—1 year base salary + 1 year COBRA reimbursement .
- CIC + qualifying termination (double‑trigger): CEO—3 years base salary + 3 years COBRA reimbursement + amount equal to target annual bonuses paid for past 3 years; others—2 years base salary + 2 years COBRA reimbursement + target bonus .
- Equity vesting on CIC: If awards are not assumed or upon qualifying termination within 24 months post‑CIC; death/disability also trigger vesting (full for options/RSUs; pro‑rated for PS based on target or actual) .
- Equity grant practices: Annual grants generally approved at first committee meeting of fiscal year; grants ~10 business days post‑approval; standard vesting schedules noted above; grants not timed around earnings filings .
- Benefits/perquisites: Executives participate in company‑wide medical/dental/vision/life/disability; 401(k) with 50% match up to first 6% deferral; limited perquisites (e.g., premiums, occasional aircraft imputed income) .
Performance & Track Record
Key Operating and Compensation Metrics (FY2024)
| Metric | FY2024 | Notes |
|---|---|---|
| Net sales | $7.7B | +13% YoY; business summary . |
| Comparable store sales | 7.6% | Growth focus; comp drives annual bonus . |
| EBIT (Adjusted EBIT/Plan EBIT) | $504.5M | Plan EBIT basis; used for bonus and PS metrics . |
| Operating cash flow | $645.2M | Cash generation . |
| Diluted EPS | $3.75 | Reported . |
| Say‑on‑pay support | >85% (2024 vote on 2023 comp) | Committee maintained design; ongoing engagement . |
Stockholder Return (Pay vs. Performance Window)
| Measure | Value | Window/definition |
|---|---|---|
| Value of $100 investment in SFM | $658.64 | Cumulative TSR from last trading day of FY2019 to FY2024 . |
| Peer group TSR comparison | $241.39 | Same window vs. S&P Food Retail Index . |
| Net income | $380.6M | FY2024 . |
| Plan EBIT (Company‑selected measure) | $504.5M | FY2024 . |
Multi‑Year Revenue and EBIT
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Revenues | $6,404.2M* | $6,837.4M* | $7,719.3M* |
| EBIT | $358.4M | $396.3M | $504.5M |
*Values retrieved from S&P Global.
Compensation Peer Group & Governance Signals
- Peer group (2024 benchmarking): Tractor Supply, Casey’s, Dick’s Sporting Goods, Ulta Beauty, SpartanNash, Burlington, Petco, Big Lots, Grocery Outlet, Sally Beauty, Five Below, Designer Brands; SFM positioned at $7,719M revenues and $12,754M market value .
- 2025 peer group changes: Remove Big Lots and Designer Brands; add Williams‑Sonoma, Texas Roadhouse, Bloomin’ Brands .
- Stock ownership guidelines updated in 2024; executive compliance assessed (Hurley’s compliance not disclosed) .
- ESG/Strategy linkage: Supply chain proximity to stores (≤250 miles for ~80% of stores) ties to sustainability and freshness goals—a core focus area connected to executive performance evaluations .
Equity Ownership & Alignment (Detailed)
- Ownership guidelines thresholds and counting methodology for executives as above .
- Hedging/pledging restrictions and preclearance requirement .
- Equity vesting mechanics (CIC/death/disability/retirement) as summarized above .
Employment Terms (Detailed)
| Provision | CEO | Other designated executives |
|---|---|---|
| Termination (no CIC) | 2 yrs salary; 2 yrs COBRA; prior 2 yrs bonuses; prorated current bonus | 1 yr salary; 1 yr COBRA |
| CIC + qualifying termination | 3 yrs salary; 3 yrs COBRA; past 3 yrs target bonuses | 2 yrs salary; 2 yrs COBRA; current target bonus |
| Equity treatment | Double‑trigger vesting if not assumed or if terminated within 24 months post‑CIC; death/disability vesting rules | Same |
| Clawback | Rule 10D‑1 compliant Recoupment Policy | Same |
Investment Implications
- Pay‑for‑performance alignment is strong: annual bonus (75% Plan EBIT/25% comps) and PS awards tied to three‑year Plan EBIT directly incentivize efficient, reliable supply chain execution—central to Hurley’s remit—driving profitability and store productivity .
- Retention risk appears moderated by multi‑year equity (RSUs/options/PS) with staggered vesting and severance/CIC protections for designated executives; absence of disclosed individual grants/ownership for Hurley limits precision on near‑term selling pressure assessment .
- Governance safeguards (ownership guidelines, hedging/pledging limits, 10D‑1 clawback) reduce misalignment risk; 85%+ say‑on‑pay support and updated peer group indicate stable shareholder acceptance and disciplined benchmarking .
- Execution risk centers on continued delivery of supply chain proximity and efficiency (80% of stores within 250 miles of DCs), underpinning comps and EBIT targets; bonus and PS structures should reinforce focus on profitability over volume .