Performance Food executive announces retirement plans

Performance Food Group Co (NYSE:PFGC) announced Monday that Executive Vice President and Chief Commercial Officer Patrick T. Hagerty will retire on January 4, 2025. The company disclosed the planned departure in a recent filing with the Securities and Exchange Commission.

Hagerty, who has been with the Richmond, VA-based wholesale food distributor, notified the company of his intention to retire last Thursday. Following his notice, the company's Human Capital and Compensation Committee approved a letter of agreement detailing the terms of his retirement and subsequent consulting agreement.

Under the terms of the agreement, Hagerty will continue to receive his current base salary and benefits and will remain eligible for equity vesting until his retirement date. After retiring, he will serve as a consultant to the company until June 30, 2025. Hagerty will be compensated with payments totaling $312,500 for his consulting services, with a portion deferred until the end of the consulting period, contingent upon his adherence to a release of claims in favor of the company.

Additionally, Hagerty is set to receive a fiscal year 2025 equity award valued at $750,000 that will vest over 12 months, as well as continued participation in the company’s health plans and executive physicals for two years post-retirement. He will also be eligible for 50% of his fiscal 2025 annual bonus based on actual performance and will retain vesting rights for any outstanding equity awards as per their original terms.

The agreement includes a clause for "retirement" vesting of Hagerty’s unvested equity awards after the consulting period, by the terms of those awards. Furthermore, Hagerty is subject to customary confidentiality, non-competition, and non-solicitation restrictions for 18 months after the consulting period concludes.

The article is based on an 8K filing.

In other recent news, Performance Food Group (PFG) has announced the addition of Danielle M. Brown to its Board of Directors, expanding the board to 12 members. Ms. Brown's extensive IT experience is expected to contribute significantly to the company's strategic vision.

This development follows recent financial results which showed a modest sales growth of 0.6% in the third quarter of 2024, with net sales reaching $13.9 billion. However, the company's net income experienced a decrease of 12.3% year-over-year, falling to $70.4 million.

Looking ahead, PFG anticipates sequential improvement in sales and strong profit growth in the fourth quarter and into fiscal 2025. The company expects net sales for fiscal Q4 to be between $15 billion and $15.4 billion, with adjusted EBITDA between $430 million and $450 million. PFG remains optimistic about long-term growth and plans to deploy cash flow towards strategic investments.

These updates highlight the recent developments within the company.

InvestingPro Insights

As Performance Food Group Co (NYSE:PFGC) prepares for the retirement of a key executive, investors may find value in considering the company's financial metrics and market position. InvestingPro data indicates that PFGC is trading at a price-to-earnings (P/E) ratio of 24, which is noteworthy considering that the company's earnings growth and PEG ratio of 0.82 suggest potential for near-term growth. Additionally, with a market capitalization of $10.16 billion and a revenue of $54.06 billion over the last twelve months as of Q3 2023, PFGC stands as a prominent player in the Consumer Staples Distribution & Retail industry.

InvestingPro Tips highlight that while PFGC suffers from weak gross profit margins, currently at 12.02%, the company's liquid assets exceed its short-term obligations, providing a degree of financial stability. Moreover, analysts predict that PFGC will be profitable this year, reinforcing the company's solid performance over the last twelve months. It is also important to note that PFGC does not pay a dividend, which could influence investment strategies focused on income generation.

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