John P. Ordus
TRACTOR SUPPLY CO /DE/About John P. Ordus
Executive Vice President – Chief Stores Officer at Tractor Supply Company (TSCO). Ordus leads store operations, real estate expansion, and customer experience, delivering an all‑time high customer satisfaction score, 80 new store openings in 2024, and strong manager retention . Company performance during his tenure includes record sales of $14.9B in 2024 and $14.6B in 2023, with net income around $1.1B each year; PSUs use net sales and EPS growth with a relative TSR modifier to align pay with shareholder returns .
Company performance context:
| Metric | 2023 | 2024 |
|---|---|---|
| Revenue ($USD Billions) | $14.6 | $14.9 |
| Net Income ($USD Billions) | $1.107 | $1.101 |
| Diluted EPS ($USD, split-adjusted) | $2.02 | $2.04 |
| Value of $100 Initial Investment (Company TSR) | $248 | $319 |
Past Roles
Not disclosed in the proxy statements provided. (No data available to cite.)
External Roles
Not disclosed in the proxy statements provided. (No data available to cite.)
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $650,077 | $647,462 |
| Target Bonus (% of Base) | 75% | 75% |
| Actual CIP Payout ($) | $385,729 | $422,423 |
Performance Compensation
Annual Cash Incentive Plan (CIP) Structure and Results
| Component | Weight | Target Definition | 2023 Actual | 2023 Weighted Payout | 2024 Actual | 2024 Weighted Payout |
|---|---|---|---|---|---|---|
| Net Income | 75% | Board‑set budget; challenging but attainable | $1.107B vs $1.16B target (95%) | 65.8% of target portion | $1.101B vs $1.129–$1.152B target range (96% of midpoint) | 86.4% of target portion |
| Strategic Initiatives | 25% | Initiatives to advance long‑range plan | Total 32.5% weighted payout | 32.5% of target | Four initiatives scored; total 21.8% weighted payout | 21.8% of target |
| Total CIP Payout (% of Target) | — | — | ≈81.9% (49.35% + 32.5%) | — | ≈86.6% (0.75×0.864 + 21.8%) | — |
2024 Strategic Initiative detail:
| Initiative | Weight | Targeted Focus | Actual | Weighted Payout |
|---|---|---|---|---|
| Lead with Legendary Service | 6.25% | Improve customer interactions via tech & metrics | 96.0% | 6.0% |
| Drive Value from Neighbor’s Club | 6.25% | Increase CLV & transactions among members | 134.7% | 8.4% |
| Accelerate Growth Through Digital Experience | 6.25% | Improve omnichannel conversion & experience | 119.2% | 7.4% |
| Scale the Garden Center | 6.25% | Grow live goods sales & ROIC of remodels | 0.0% | 0.0% |
| Total | 25% | — | — | 21.8% |
Long‑Term Incentives (RSUs, PSUs, Options) – Design
- Mix: 25% stock options (3‑year ratable vest), 25% RSUs (3‑year ratable vest), 50% PSUs (cliff vest at 3 years) .
- PSU metrics: Net sales growth (50%) and EPS growth (50%); relative TSR modifier ±25% vs S&P 500 .
- 2022 PSU outcome (measured on FY2024): Earned at 30% of target; relative TSR 68.41% so no TSR adjustment .
2024 Grants (February 5, 2024)
| Award Type | Grant Date | Count | Exercise/Price | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| PSUs (Target) | 2/5/2024 | 9,580 | — | $449,934 | Cliff vest at 3 years; TSR modifier applies |
| RSUs | 2/5/2024 | 5,030 | — | $224,811 | 3‑year ratable |
| Stock Options | 2/5/2024 | 19,225 | $46.59 strike; 10‑year term | $224,971 | 3‑year ratable |
2023 Grants (February 8, 2023) – Reference
| Award Type | Grant Date | Count | Exercise/Price | Notes |
|---|---|---|---|---|
| PSUs (Target) | 2/8/2023 | 8,410 | — | TSR modifier applies |
| RSUs | 2/8/2023 | 2,970 | — | 3‑year ratable |
| Stock Options | 2/8/2023 | 21,360 | $46.19 strike; 10‑year term | 3‑year ratable |
Realizations and Vests (2024)
| Item | 2024 Activity |
|---|---|
| Options Exercised | 113,080 shares; $3,383,230 value realized |
| Stock Vested (RSUs/PSUs) | 44,165 shares; $2,038,439 value realized |
Equity Ownership & Alignment
Beneficial Ownership (as of March 21, 2025)
| Holder | Direct Shares Owned | Options/PSUs/RSUs Vesting within 60 Days | Total | % of Class |
|---|---|---|---|---|
| John P. Ordus | 84,930 | 97,120 | 182,050 | <1% |
Outstanding Equity Awards (FY2024 Year‑End)
Options:
| Grant Date | Exercisable (#) | Unexercisable (#) | Strike ($) | Expiration |
|---|---|---|---|---|
| 2/3/2021 | 59,745 | — | 28.64 | 2/3/2031 |
| 2/9/2022 | 13,350 | 6,680 | 44.39 | 2/9/2032 |
| 2/8/2023 | 5,470 | 10,945 | 46.55 | 2/8/2033 |
| 2/5/2024 | — | 19,225 | 46.59 | 2/5/2034 |
Stock awards:
| Award | Unvested Shares (#) | Market Value at 12/27/2024 ($54.56/share) |
|---|---|---|
| RSUs (2/9/2022) | 1,560 | $85,114 |
| RSUs (2/8/2023) | 2,970 | $162,043 |
| RSUs (2/5/2024) | 5,030 | $274,437 |
| PSUs (2022, perf. met; vest date pending) | 8,880 | $484,493 |
| PSUs (2023, target) | 8,410 | $458,850 |
| PSUs (2024, target) | 9,580 | $522,685 |
Ownership policies and alignment:
- Robust stock ownership guideline for EVPs: 3x base compensation; all executives meet or are within initial compliance period .
- Anti‑hedging and anti‑pledging policy prohibits pledging, short sales, derivatives, and hedging transactions .
- No pension/SERP; emphasis on at‑risk, performance‑based equity .
Deferred Compensation (2024)
| Item | Amount ($) |
|---|---|
| Executive Contributions | $6,475 |
| Company Contributions | $4,500 |
| Aggregate Earnings | $2,586 |
| Withdrawals/Distributions | $(13,646) |
| Year‑End Balance | $11,787 |
Employment Terms
Change‑in‑Control (CIC) Agreements (Double‑Trigger; term through Feb 28, 2028)
- Cash severance: 1.5x base salary + 1.5x target annual bonus (lump sum) .
- Benefits: 2 years of life, disability, and medical coverage; outplacement up to $40,000 .
- Pro‑rata bonus for termination year (greater of target or projected performance) .
- Equity: Options become fully vested; RSUs vest; PSUs settle at target if assumed; accelerated if not assumed or upon qualified termination within one year of CIC .
- Restrictive covenants: Non‑compete, non‑solicit, confidentiality, and non‑disparagement for 18 months post‑termination (24 months for CEO) .
- No excise tax gross‑ups; payments capped if beneficial to after‑tax outcome .
Protective agreements tied to PSUs:
- 18‑month post‑termination non‑compete/non‑solicit; breach results in forfeiture of PSUs .
Clawback:
- Recoupment of incentive compensation upon financial restatement for the prior three fiscal years if awards were based on restated metrics (including stock price/TSR) .
Performance & Track Record
- Delivered all‑time high customer satisfaction; best‑in‑class rankings for value, availability, friendliness, checkout speed .
- Ensured full staffing/training; expanded Field Activity Support to 1.33M project hours in 2024 .
- Opened 80 Tractor Supply stores; executed Fusion remodels; >120 Garden Center transformations .
- High store manager retention; supported >7,000 store promotions in 2024 .
- Insider activity in 2024: options exercised (113,080 shares; $3.38M value) and stock vested (44,165 shares; $2.04M), indicating scheduled equity monetization cadence tied to vesting .
Compensation Governance and Peer Benchmarking
- Pay mix leans heavily to at‑risk equity; PSUs with net sales/EPS metrics and relative TSR modifier .
- Target positioning around market median (50th percentile) using a retail peer group (e.g., AutoZone, O’Reilly, Best Buy, Dollar General, Dollar Tree, Ross, Burlington, BJ’s, Advance Auto Parts, Casey’s, Ulta) .
- Strong Say‑on‑Pay support: 93.0% approval in 2024; 89.4% in 2023 .
- Prohibitions: hedging/pledging; no excise tax gross‑ups; minimum equity vesting; dividend equivalents not paid on unearned/unvested equity .
- No related‑party transactions requiring disclosure .
Compensation Summary (Three‑Year)
| Metric ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $626,539 | $650,077 | $647,462 |
| Stock Awards (RSUs + PSUs, grant‑date FV) | $599,744 | $599,956 | $674,745 |
| Option Awards (grant‑date FV) | $199,980 | $199,968 | $224,971 |
| Non‑Equity Incentive (CIP) | $527,871 | $385,729 | $422,423 |
| All Other Compensation | $36,473 | $40,930 | $43,545 |
| Total | $1,990,607 | $1,876,660 | $2,013,146 |
Investment Implications
- Alignment: High equity mix (RSUs/PSUs/options) and robust ownership/anti‑hedging/anti‑pledging policies tie Ordus’ outcomes to long‑term TSR and operating performance .
- Performance pay discipline: 2023–2024 CIP payouts below 100% of target reflect governance rigor amid macro volatility; 2022 PSUs paid at 30% of target underlines challenging growth hurdles baked into LTI .
- Retention risk mitigants: Double‑trigger CIC protection, 18‑month non‑compete, and ongoing vesting structure reduce voluntary exit risk; no golden parachute gross‑ups .
- Trading signals: 2024 exercises/vests indicate scheduled liquidity events around vesting dates; monitor future vesting cliffs (2023/2024 PSUs) for potential insider supply and sentiment reads tied to PSU attainment .
- Shareholder support: High Say‑on‑Pay votes and clear pay‑for‑performance design reduce governance overhangs, supporting investor confidence in incentive structures .