Summary
Fastenal Company (FAST) has announced a key leadership transition and a corresponding executive compensation update. The Board of Directors has elected Mr. Watts, who was previously appointed President and Chief Sales Officer in December 2025 and subsequently named President and CEO, as a director of the company. This appointment is effective as of the CEO Transition Date and fills the vacancy left by Daniel L. Florness. Mr. Watts will serve until the next annual shareholder meeting. In conjunction with his new role as CEO and director, Mr. Watts will receive a new compensation package. This includes a base salary of $650,000, prorated for 2026, along with target quarterly cash incentive awards tied to exceeding prior year's pre-tax income. He will also receive supplemental quarterly cash incentives consistent with the ROA Assets Program. Importantly, no additional equity awards are planned for Mr. Watts in 2026, though he will be eligible in 2027. This filing also confirms no undisclosed related-party transactions or arrangements concerning Mr. Watts's directorship.
Key Highlights
- 1Mr. Watts, the new President and CEO, has been elected to the Board of Directors.
- 2Mr. Watts's directorship is effective as of the CEO Transition Date and fills a vacancy.
- 3As a director, Mr. Watts will receive an annual cash retainer of $50,000.
- 4Mr. Watts's new compensation package as CEO includes an annual base salary of $650,000 (prorated for 2026).
- 5Target quarterly cash incentive awards for Mr. Watts are tied to exceeding prior year's pre-tax income.
- 6Supplemental quarterly cash incentive awards for Mr. Watts will align with the ROA Assets Program.
- 7No additional equity incentive awards will be granted to Mr. Watts in 2026, with eligibility resuming in 2027.