Scott Salmon
SiteOne Landscape SupplyAbout Scott Salmon
Scott Salmon (age 57) is Executive Vice President, Strategy and Development at SiteOne, serving as an executive officer since 2019. He holds a B.S. in Economics and Operations Research from the U.S. Air Force Academy and a Master’s in Public Policy from Harvard Kennedy School; prior to SiteOne he was President of Oldcastle’s Lawn & Garden division and an F‑16 Pilot/Flight Commander in the U.S. Air Force, flying over 30 combat missions . Recent company performance context includes 2024 net sales of $4.54B (+6% YoY), Adjusted EBITDA of $378.2M (−8% YoY), and NPS of 85.2; five‑year TSR measured as $147.81 from a $100 base, and PSUs for the 2021–2023 cycle paid at 111.6% of target (three‑year EBTA CAGR 33.0% with ROIC modifier) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Oldcastle Inc. (CRH plc) | President, Lawn & Garden division; senior strategy/development roles | 17 years | Led strategic planning and development across divisions |
| United States Air Force | F‑16 Pilot and Flight Commander | — | Flew 30+ combat missions; operational leadership |
External Roles
- No external public company directorships disclosed in the proxy biography .
Fixed Compensation
Multi-year compensation summary for Scott Salmon:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 417,308 | 437,308 | 448,654 |
| Target Bonus (% of Salary) | — | 60% | 65% |
| Actual Bonus Paid ($) | 274,171 | 184,128 | 56,964 |
| Stock Awards Grant-Date FV ($) | 399,704 | 433,144 | 674,715 |
| Option Awards Grant-Date FV ($) | 204,363 | 220,043 | — |
Performance Compensation
Annual Cash Incentive (FY 2024 design and outcomes)
| Component | Weight | Target | Actual | Payout vs Target | Notes |
|---|---|---|---|---|---|
| Adjusted EBITDA | 70% | $480M (post-acquisition adjustment) | $376.6M | 0% | Linear schedule; below threshold |
| Customer Performance (NPS/Retention/Per-Customer Value) | 5% | NPS: 83; Retention: 1.75; Per-Customer: 1.75 | NPS: 85.2; Retention: 1.20; Per-Customer: 1.12 | 41% | 3 metrics equally weighted |
| Organic Daily Sales Growth | 5% | 5% | −1% | 0% | Linear schedule |
| Individual Strategic Goals | 20% | Category-specific | Strategy & IR: 125%; Acquisition Growth: 100%; Integration & Performance: 50% | Applied per component | Committee/CEO assessment |
| Resulting STI Payout | — | — | — | 20% of target; $56,964 bonus | Eligible earnings $448,654; target 65% |
Long-Term Incentives (structure and vesting)
| Award Type | FY 2024 Grant | Vesting/Performance | Key Terms |
|---|---|---|---|
| RSUs | 2,141 units; FV $337,357 (half of total LTI) | 4 equal annual installments starting 2/7/2025 | Time-based under 2020 Plan; “Rule of 65” retirement treatment updated Feb 2023 |
| PSUs (2024–2026 cycle) | 2,141 target units; FV $337,357 (half of total LTI) | EBTA relative growth with ROIC modifier; 0–200% payout; performance cycle 1/1/2024–1/3/2027 | 2025 design change: EBTA 70% + absolute ROIC 30% (independent metric) |
| 2021 PSU Payout (settled 5/6/2024) | 1,231 units settled; value $194,646 | 111.6% of target based on EBTA CAGR 33.0% (46.5th percentile) and avg ROIC 23.1% (120% modifier) | Settled at $158.12 share price |
Option Awards (outstanding and terms)
| Grant Date | Exercisable (#) | Unexercisable (#) | Strike ($) | Expiration | Vesting Terms |
|---|---|---|---|---|---|
| 2/9/2023 | 762 | 2,284 | 149.36 | 2/9/2033 | Options vest 4 equal annual installments |
| 2/10/2022 | 1,778 | 1,778 | 179.40 | 2/10/2032 | 4 equal annual installments |
| 2/11/2021 | 2,855 | 951 | 166.15 | 2/11/2031 | 4 equal annual installments |
| 2/5/2020 | 7,379 | — | 101.63 | 2/5/2030 | 4 equal annual installments |
| 3/11/2019 | 26,406 | — | 52.26 | 3/11/2029 | 4 equal annual installments |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 54,256 shares beneficially owned (company-wide outstanding shares: 44,966,884 as of 3/14/2025) |
| RSUs Not Vested (12/27/2024) | 2,141 (2024 grant); 1,087 (2023); 557 (2022); 276 (2021) |
| PSUs Unearned (12/27/2024) | 2,141 (2024 cycle); 1,450 (2023 cycle) |
| Options (see table above) | Exercisable and unexercisable per grant |
| Ownership Guidelines | Covered Executives must hold ≥2× base salary; 50% net shares retention until met; CEO and Covered Executives currently comply |
| Hedging/Pledging | Directors/executives prohibited from hedging/pledging; none have pledged SiteOne stock |
| Insider Activity (2024) | No options exercised by Salmon; stock vested (RSUs/PSUs) 2,337 shares, value $342,226; additional estimated 1,114 PSUs vested but unsettled as of proxy date |
Employment Terms
| Topic | Key Provisions |
|---|---|
| Role/Start | EVP Strategy & Development; joined March 2019; executive officer since 2019 |
| Severance (No CIC) | 18 months base salary; prorated annual bonus (actual results); 18 months COBRA at active rates reimbursed; subject to release |
| Severance (Double-Trigger CIC) | 2× (base salary + target annual bonus) lump sum; prorated actual-year bonus; 18 months COBRA; subject to release |
| Equity Treatment | Death/disability: unvested options/RSUs accelerate; PSUs prorated at target. Retirement Rule of 65: continued vesting post employment (options/RSUs), PSUs prorated based on timing; termination without cause: prorata vesting next tranche; CIC: awards assumed; if not or upon qualifying termination within 1 year, full vest/cancel for consideration; PSUs convert to RSUs and vest per treatment |
| Clawbacks | Broad clawback for fraud/misconduct/illegal activity (incl. time-based equity); mandatory restatement clawback under NYSE rules; 3-year lookback for restatements; Board retains supplemental clawback rights |
| Anti-Hedging/Pledging | Prohibited for directors/executives/employees |
| Non‑Compete/Non‑Solicit | Equity award agreements include Competitive Activity covenants (PSU and RSU forms) |
Compensation Structure Analysis
- Increased equity emphasis and PSU mix: LTIP set to 50% PSUs / 50% RSUs in 2024; PSUs now weighted 70% EBTA and 30% absolute ROIC beginning 2025, enhancing capital efficiency accountability .
- Strong pay-for-performance discipline: 2024 STI paid 20% of target for Salmon as Adjusted EBITDA and Organic Daily Sales fell below thresholds; Customer Performance paid 41% and strategy goals varied by category .
- No option repricing/discounted options; no excise tax gross‑ups; clawbacks broadened, stock ownership requirements enforced; anti‑hedging/pledging policy in place .
Say‑on‑Pay & Peer Group
- Say‑on‑pay approval: >93% at 2024 Annual Meeting .
- Compensation peer group (used for 2024 decisions) includes distributors/building products (e.g., CNM, POOL, FAST, WSO, BLD, IBP); base salaries approximated peer median; FW Cook serves as independent advisor .
Performance & Track Record
- Strategic accomplishments: Improved acquisition strategy plan; built Strategy & Development team; high-quality acquisitions representing ~5% of TTM revenue; strong support for bulk manufacturing best practices and investor relations .
- Execution risk: Underperformance from certain acquisitions flagged in integration/performance assessment (50% achievement) .
Investment Implications
- Alignment: Large equity holdings, robust ownership guidelines, prohibition on hedging/pledging, and PSU metrics tied to EBTA and ROIC support shareholder alignment and discourage excessive risk-taking .
- Retention and selling pressure: Double-trigger CIC severance and retirement-friendly vesting under Rule of 65 reduce retention risk; 2024 Form 4-equivalent activity shows no option exercises by Salmon and modest vesting, with no disclosed 10b5‑1 plan adoption for him in Q4 2024—indicating limited programmed selling .
- Pay-for-performance signal: 2024 STI sharply reduced (20% of target) due to missed EBITDA/sales thresholds underscores compensation discipline; 2021–2023 PSUs paid near target (111.6%), reflecting strong multi-year EBTA/ROIC performance, but near-median relative ranking suggests balanced expectations .