Fastenal (NASDAQ: FAST) details compensation for incoming CEO and director
Rhea-AI Filing Summary
Fastenal Company detailed governance and compensation actions tied to its planned CEO transition. Jeffery M. Watts, currently President and Chief Sales Officer, will become President and Chief Executive Officer and join the board as a director effective July 16, 2026, succeeding Daniel L. Florness. He will serve on the board until the next annual shareholder meeting and receive an annual cash retainer of $50,000 for his employee-director service, prorated from the transition date.
The compensation committee approved a new CEO pay package effective the same date. Watts will receive an annual base salary of $650,000, prorated for 2026, target quarterly cash incentives equal to 1.75% of the amount by which company-wide pre-tax income exceeds the prior-year quarter level, and supplemental quarterly incentives under the ROA Assets Program. He will receive no additional equity incentive awards in 2026 and will be eligible for equity awards commensurate with the CEO role in 2027.
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8-K Event Classification
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
1 item
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Key Figures
CEO base salary: $650,000
Director cash retainer: $50,000
Quarterly incentive percentage: 1.75%
3 metrics
CEO base salary
$650,000
Annual base salary for Jeffery M. Watts as President and CEO, prorated from the CEO Transition Date in 2026
Director cash retainer
$50,000
Annual cash retainer for Jeffery M. Watts as an employee director, prorated from July 16, 2026
Quarterly incentive percentage
1.75%
Target quarterly cash incentive based on the amount by which company-wide pre-tax income exceeds the prior-year quarter level
Key Terms
CEO Transition Date, ROA Assets Program, pre-tax income, Regulation S-K
4 terms
CEO Transition Date financial
"effective July 16, 2026 (the "CEO Transition Date"), and second,"
ROA Assets Program financial
"target supplemental quarterly cash incentive awards consistent with the ROA Assets Program approved"
pre-tax income financial
"1.75% of the amount by which Company-wide quarterly pre-tax income exceeds 100%"
Pre-tax income is the amount a company earns after subtracting all costs and expenses but before paying income taxes. Think of it like your paycheck before tax withholding: it shows the business’s underlying profit power without the distorting effect of different tax rates or one-time tax events. Investors use it to compare operating performance across companies and to gauge profitability and trends before tax policy or timing alters the bottom line.
Regulation S-K regulatory
"disclosed under Item 404(a) of Regulation S-K promulgated by the Securities"
A set of U.S. Securities and Exchange Commission rules that tell public companies which narrative and qualitative details must be disclosed in filings, such as risk factors, management discussion, executive pay, legal proceedings and business description. Think of it as a standardized checklist or blueprint that ensures investors get the same types of background information from every company so they can compare risks, management quality and strategy before making investment decisions.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What leadership changes did Fastenal (FAST) report for Jeffery M. Watts?
Fastenal reported that Jeffery M. Watts, currently President and Chief Sales Officer, will become President and Chief Executive Officer and join the board as a director effective July 16, 2026, succeeding Daniel L. Florness as part of a previously announced CEO transition.
When will Jeffery M. Watts become CEO of Fastenal (FAST)?
Jeffery M. Watts will assume the role of President and Chief Executive Officer on July 16, 2026, the defined CEO Transition Date. His board directorship also becomes effective that day, when he succeeds Daniel L. Florness and serves until the next annual shareholder meeting.
What is the new base salary for Fastenal (FAST) CEO Jeffery M. Watts?
Under his new arrangement, Jeffery M. Watts will receive an annual base salary of $650,000, prorated from the CEO Transition Date through year-end 2026. This salary reflects his promotion from President and Chief Sales Officer to President and Chief Executive Officer.
How is Jeffery M. Watts’ incentive compensation structured at Fastenal (FAST)?
Watts will receive target quarterly cash incentives equal to 1.75% of the amount by which company-wide pre-tax income exceeds the same quarter’s prior-year level. He will also receive supplemental quarterly cash incentives under the ROA Assets Program approved by the compensation committee.
Will Fastenal (FAST) grant Jeffery M. Watts equity awards in 2026?
Fastenal stated that no additional equity incentive awards will be granted to Jeffery M. Watts in 2026 in connection with his promotion. He will, however, be eligible for equity incentive awards commensurate with the CEO position beginning in 2027.
What director compensation will Jeffery M. Watts receive at Fastenal (FAST)?
For his role as an employee director, Jeffery M. Watts will receive an annual cash retainer of $50,000, prorated for the portion of the year he serves on the board after the CEO Transition Date. Payments will follow Fastenal’s standard director compensation practices.