Joseph Ketter
SiteOne Landscape SupplyAbout Joseph Ketter
Executive Vice President, Human Resources (since Feb 2020); joined SiteOne in July 2015 after senior HR leadership roles at Newell Rubbermaid and Graham Packaging. Age 56; B.A. in Human Resource Management and Management from Ohio University; completed Cooper Industries’ Employee Relations Training Program . During his tenure, SiteOne delivered 2024 net sales of $4.54B (+6% y/y) with Adjusted EBITDA of $378.2M (−8% y/y) and an NPS of 85.2; five‑year TSR (FY2019–FY2024) translated a $100 investment into $147.81, while peers reached $248.51 . In 2023, safety and engagement improved (LTIR down 49% to 0.21; NPS 84.9); Ketter’s 2023 individual goals paid at 150% for Safety, 100% for D&I, and 100% for Team Development .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Graham Packaging | Executive Vice President, Human Resources | Not disclosed | Led global human resources |
| Newell Rubbermaid | Senior HR leadership roles; last role SVP, HR – Development | 19 years | Reported to Chief Development Officer; provided strategic HR support to multiple divisions |
| SiteOne Landscape Supply | Senior Vice President, Human Resources (pre‑2020) | 2015–2020 | Built HR foundation prior to promotion to EVP HR |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No public company directorships or external roles disclosed in Company proxies |
Fixed Compensation
| Metric (USD) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Base Salary (actual) | $348,462 | $367,307 | $382,981 |
| Target Bonus % of Salary | — | — | 60% of salary |
| Target Bonus $ | — | — | $229,789 (60% of eligible earnings) |
| Actual Bonus Paid (Non‑Equity Incentive) | $436,166 | $244,076 | $168,435 |
Notes: 2023 target total direct compensation (target mix): Base $385,000; Target STI 60% ($231,000); Target LTI $600,000; Total $1,216,000 .
Performance Compensation
2023 annual cash incentive design and results (corporate metrics apply company‑wide; individual goals specific to each NEO):
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout vs Target |
|---|---|---|---|---|---|---|
| Adjusted EBITDA (after Aug 2023 acquisition adjustment) | 70% | $406M | $462–$464M | $638M | $415.2M | 58% |
| Company NPS | 5% | 72 | 80 | 85 | 84.9 | 149% |
| Organic Daily Sales Growth | 5% | 0% | 5% | 7% | 0.2% | 52% |
| Individual Strategic Performance – Ketter | 20% | — | — | — | Safety 150%; D&I 100%; Team Development 100% | Weighted within 20% bucket |
Result: Ketter’s 2023 annual cash incentive paid at 73% of target ($168,435) .
Long‑term incentives (design and key outcomes):
- PSU design (2023 grants): 3‑year Relative EBTA vs peer group with ROIC modifier; payout 0–200%; settlement after performance certification .
- 2021 PSU cycle (Jan 2021–Dec 2023) certified in May 2024: 111.6% payout (EBTA CAGR 33.0% at 46.5th percentile; ROIC 23.1% +20% modifier) .
- 2025 change: PSUs now 70% relative EBTA, 30% absolute ROIC (independent metric), increasing capital discipline .
Equity Ownership & Alignment
2023 grants (as granted in 2023 under the 2020 Plan):
| Award Type | Grant Date | Number | Terms/Strike | Grant Date Fair Value |
|---|---|---|---|---|
| Stock Options | 2/9/2023 | 2,811 | $149.36; vest 25% annually over 4 years | $203,067 |
| RSUs | 2/9/2023 | 1,339 | Vest annually over 4 years beginning 2/9/2024 | $199,993 |
| PSUs (target) | 2/9/2023 | 1,339 | 3‑year performance (1/2/2023–12/28/2025) | $199,993 |
Outstanding equity at 12/31/2023 (selected tranches):
| Award | Grant Date | Exercisable | Unexercisable | Exercise Price | RSUs Unvested (#) | RSUs MV ($) | PSUs Unearned (#) | PSUs MV ($) |
|---|---|---|---|---|---|---|---|---|
| Options | 2/11/2021 | 1,644 | 1,643 | $166.15 | — | — | — | — |
| Options | 2/10/2022 | 815 | 2,444 | $179.40 | — | — | — | — |
| Options | 2/5/2020 | 4,981 | 1,660 | $101.63 | — | — | — | — |
| RSUs | 2/10/2022 | — | — | — | 766 | $124,475 | 1,021 | $165,913 |
| RSUs/PSUs | 2/9/2023 | — | — | — | 1,339 | $217,588 | 1,339 | $217,588 |
Market value based on $162.50 closing price on 12/29/2023 . 2023 vesting/realization (non‑option): 2,085 shares vested ($327,842 on vesting); 952 PSUs from 2021 cycle vested (target basis; $154,700 placeholder pending final certification, later certified 111.6%) .
Ownership policy, pledging/hedging:
- Executive stock ownership and retention: CEO 6x salary; Covered Executives (includes senior leadership reporting to CEO) 2x salary; executives must retain 50% of net after‑tax shares until compliant; CEO and each Covered Executive were in compliance (2024, 2025 disclosures) .
- Anti‑hedging/anti‑pledging: Hedging and pledging prohibited; none of the directors or executive officers have pledged SiteOne stock .
- Equity overhang/right to acquire: Footnote indicates Mr. Ketter had rights to acquire 80,998 shares through option exercises/RSU vesting on or before May 7, 2025 (timing‑based rights) .
Employment Terms
- Separation benefit agreements (entered Nov 2023) for NEOs and other senior executives: Outside CIC—18 months base salary paid in installments; prorated actual bonus; 18 months COBRA at employee rates (reimbursed). Under CIC (within 12 months, double trigger)—lump sum 2x (base salary + target bonus), plus prorated actual bonus; 18 months COBRA; release/covenant compliance required .
- Equity treatment (2020/2016 Plans): Death/disability—options/RSUs fully vest; PSUs pro‑rated at target. Retirement (Rule of 65) allows continued vesting of options/RSUs; PSUs prorated based on timing with settlement at end of performance cycle. Termination without cause—pro‑rata vesting for next tranche; PSUs pro‑rated for months employed with performance measured at cycle end. CIC—assumed awards continue; if not assumed or if terminated without cause/for good reason within one year post‑CIC, full vesting; PSUs convert to RSUs at target (or performance‑to‑date in year 3) and vest at end of period or earlier upon qualifying termination .
- Clawbacks: Broad discretionary clawback (fraud, misconduct, illegal activity) in addition to NYSE‑mandated restatement clawback policy .
Compensation Structure Analysis (signals)
- Pay‑for‑performance discipline: 2023 annual bonus paid 73% of target for Ketter as Adjusted EBITDA fell below target and organic daily sales barely above threshold; customer experience near maximum; individual goals mixed but solid, especially Safety (150%) .
- Mix shift and at‑risk equity: 2023 LTI split among options, RSUs, PSUs; from 2024, long‑term equity for executives moved to 50% PSUs/50% RSUs, reducing option leverage and increasing performance linkage vs. time‑based equity; in 2025, PSUs add independent ROIC weighting (30%), increasing emphasis on capital efficiency .
- Year‑over‑year realized cash trend: Non‑equity incentive declined from $244,076 (2022) to $168,435 (2023) as profitability tightened; stock/option grant values were modestly higher in 2023 than 2022 ($399,986 stock awards vs. $366,334; $203,067 options vs. $187,295) .
- Share supply/vesting cadence: Multiple option tranches from 2017–2023 plus RSUs/PSUs vesting annually/at cycle end suggest periodic, predictable supply; anti‑pledging, retention requirements and double‑trigger CIC mitigate near‑term forced selling signals .
Equity & Company Performance Context
| Performance Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Sales ($B) | — | $4.30 | $4.54 |
| YoY Growth | — | +7% | +6% |
| Adjusted EBITDA ($M) | $464.3 (A‑1) | $410.7 | $378.2 |
| Company NPS | 78.9 (prior yr ref) | 84.9 | 85.2 |
| 5‑yr TSR (FY2019 base=100) | — | — | 147.81 |
Sources: 2023 highlights and metrics ; 2024 highlights and Adjusted EBITDA ; Adjusted EBITDA reconciliation ; TSR from pay‑versus‑performance table .
Compensation Governance, Peer Group, Say‑on‑Pay
- Comp Committee: Jeri L. Isbell (Chair), Fred M. Diaz, W. Roy Dunbar; independent; advised by FW Cook (independent) .
- Compensation peer group: 16‑company group including distributors/building products; Core & Main added for 2024; target positioning ~50th percentile of market .
- Say‑on‑Pay support: >93% approval at 2024 and 2023 annual meetings .
- Stockholder outreach: Engaged holders representing ~60% of outstanding shares (2024 program) and ~61% (2023 program) on governance and pay design .
Risk Indicators & Red Flags
- Pledging/hedging: Prohibited; none outstanding among executives .
- Option repricing: Prohibited without stockholder approval .
- Tax gross‑ups: No excise tax gross‑ups on CIC .
- Related‑party transactions: None in FY2024 .
Employment Terms (non‑compete/other)
Non‑compete/non‑solicit terms not itemized in proxies; severance/CIC benefits conditioned on release and compliance with restrictive covenants in applicable agreements .
Investment Implications
- Incentive calibration aligns with throughput and capital efficiency: Annual cash tied 70% to Adjusted EBITDA with customer and strategic goals; 2025 PSU shift (70% relative EBTA, 30% ROIC) should further align leadership incentives with sustained, efficient growth .
- Retention risk appears controlled: Standardized severance with double‑trigger CIC, broad clawbacks, and ownership requirements reduce near‑term flight risk; high say‑on‑pay support and ongoing investor outreach suggest limited governance friction .
- Equity supply overhang is structured and staggered: Multiple option tranches and RSU/PSU schedules provide periodic vesting supply; anti‑pledging/retention mitigate forced selling; footnote indicates substantial rights to acquire shares by May 2025 (timing‑based), which investors should monitor around vesting/exercise windows for flow impact .
- Execution credibility in HR KPIs: Safety and inclusion outcomes in 2023 (Safety 150% achievement; rising NPS; bilingual branch progress) support operational engagement under Ketter’s functional remit, though macro softness drove below‑target EBITDA and lower cash bonuses in 2023 .
Citations:
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