7/28/2015 9:29:00 PM
NEWS BRIEFS
Oberton Returns As Fastenal CEO
Seven months after becoming CEO at Fastenal Co., Leland Hein has relinquished the top job to his predecessor, board chairman Will Oberton, who resumed his duties as president and CEO on July 20, according to SEC documents.
Oberton, 57, first became CEO in December 2002, when he succeeded company founder Bob Kierlin, until December 2014. He also served as Fastenal president from July 2001 to July 2012.
He resigned as CEO in December 2014. That same month he was named as one of the 100 best-performing CEOs in the world by Harvard Business Review.
The unusual move prompted speculation among business analysts.
“It’s not very clear what is going on. But the change is definitely strange,” Edward Jones equity research analyst Logan Purk told the Minneapolis Star Tribune.
The company strategy didn’t change under Hein, Jones said, noting that in recent years Fastenal has actively cut costs and boosted operating efficiencies. At the same time, the company has closed several retail stores and installed more factory vending machines.
Some Wall Street analysts speculated that something may have happened in Oberton’s personal life that prompted him to take time off, Purk said.
Fastenal CFO Dan Florness told the Winona Daily News that the change wasn’t a negative assessment of Hein, who he called one of the most effective operators the company has had.
“He and the board really felt that was the best role he could be in for the business,” Florness said.
When Oberton stepped down as CEO, he ranked lowest on the the Harvard Business Review list for CEO compensation, with a base salary of $794,761 – the only executive on the list with base pay below $1 million.
Oberton will be paid a salary of $570,000 and quarterly bonuses equal to 0.8% of the amount by which Fastenal’s pre‑tax earnings exceed the corresponding quarter’s performance from the previous year.
Hein, 54, assumes the role of COO for Fastenal. Fastenal stated Hein “will take on the important responsibilities of heading the Company’s operations and sales areas of the Company where he is a proven leader.”
Hein will be paid a salary of $430,000, plus quarterly bonuses equal to 0.8% of the amount by which Fastenal’s pre‑tax earnings exceed the corresponding quarter’s performance from the previous year.
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