Dollar Tree, Inc., currently valued at $15.9 billion by market capitalization, has officially appointed Michael C. Creedon, Jr. as its Chief Executive Officer and has updated his compensation agreement to align with his new executive responsibilities.
On December 19, 2024, the retail chain confirmed the elevation of Creedon to CEO. The company disclosed the details of his revised compensation package on January 21. Creedon's annual base salary has been set at $1.3 million, with a target annual incentive opportunity that could reach up to 150% of his base salary.
Additionally, for the fiscal year 2025, he is expected to receive long-term incentive awards valued at an aggregate of $9 million, in line with Dollar Tree's executive compensation program. According to InvestingPro data, the company's stock has experienced a significant 32% decline over the past six months, though analysts expect net income growth this year.
The changes to Creedon's compensation, which were approved on January 16, 2025, are reflected in a new executive agreement that supersedes the previous one. The updated agreement was formalized on Tuesday, January 21, 2025.
Dollar Tree, headquartered in Chesapeake, Virginia, operates under the retail-variety stores industry classification. It is listed on the NASDAQ Global Select Market under the ticker symbol (NASDAQ:DLTR).
In other recent news, Dollar Tree Inc . is undergoing significant changes. The company announced that Lawrence Gatta, Jr., the Chief Merchandising Officer for its Family Dollar segment, will be stepping down around the end of fiscal year 2024. In addition, the company announced the immediate resignation of board member Winne Y. Park, leading to a reduction in the board's size.
Several analysts have adjusted their outlook on Dollar Tree following its third-quarter performance. Guggenheim maintained a positive stance on the company, despite cutting the stock's price target. Bernstein SocGen Group raised its price target for Dollar Tree due to uncertainties around the Family Dollar operations. BMO Capital Markets and Loop Capital also increased their price targets, while maintaining a Market Perform rating.
Dollar Tree's third-quarter results showed an Enterprise comparable sales increase of 1.8%, attributed to the Family Dollar segment and higher customer traffic. Despite this, Dollar Tree's shares have faced significant headwinds, declining over the past six months. The company is expected to see positive earnings in the coming year, with an EPS forecast of $5.39 for FY2025.
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