Business Context and Reporting Period
Company: ADVANCE AUTO PARTS INC
Filing Type: Form 8-K (Current Report)
Date of Report: February 20, 2007
Subject: Item 5.02 - Awards of Restricted Stock and Stock Appreciation Rights (SARs) to named executive officers pursuant to the 2004 Long-Term Incentive Plan.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on executive compensation awards.
Material Changes and Compensation Details
The Compensation Committee approved awards on February 20, 2007, for five executive officers. The SARs were granted at a fair market value of $38.03 per share.
| Executive Officer | Position | Restricted Stock (Shares) | SARs Underlying Shares |
|---|---|---|---|
| Michael N. Coppola | Chairman, President and CEO | 13,148 | 132,042 |
| Michael O. Moore | EVP, CFO | 5,588 | 56,118 |
| David B. Mueller | EVP, Merchandising and Marketing | 5,916 | 59,420 |
| Paul W. Klasing | EVP, Stores | 5,259 | 52,817 |
| Jimmie L. Wade | EVP, Business Development | 6,574 | 66,021 |
Terms, Vesting, and Outlook
- Restricted Stock: Vests on the third anniversary of the grant date (February 20, 2010). Officers are entitled to vote and receive dividends during the vesting period.
- Stock Appreciation Rights (SARs): Settled in common stock upon exercise. Vest in three approximately equal annual installments commencing February 20, 2008. Expire on February 20, 2014.
- Management Commentary: The filing references attached Exhibits 10.39 and 10.40 for the full text of award notices.
Investor Verification Checklist
- Verify the total number of shares authorized under the 2004 Long-Term Incentive Plan to ensure these awards do not exceed limits.
- Review Exhibits 10.39 and 10.40 for specific performance conditions or forfeiture clauses not detailed in the summary.
- Confirm the impact of these awards on the company's diluted earnings per share (EPS) in upcoming quarterly reports.
- Monitor the vesting schedule to track future dilution events starting in 2008.