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Jul 30, 2023

Advance Auto names new CEO, interim CFO as profits decline

The leadership changes come as the company launches a “comprehensive operational and strategic review” following a weak quarter. Advance Auto Parts announced a new CEO and interim CFO, leadership

The leadership changes come as the company launches a “comprehensive operational and strategic review” following a weak quarter.

Advance Auto Parts announced a new CEO and interim CFO, leadership swaps that came as it also released a weak quarterly earnings report.

Shane O’Kelly, who most recently served as CEO of industrial goods wholesaler HD Supply, was named Advance Auto’s CEO and president, effective Sept. 11, replacing Tom Greco, who is retiring, according to a Wednesday press release. Meanwhile, Jeff Shepherd, who became Advance Auto Parts’ CFO in 2017, recently exited and is being replaced on an interim basis by Tony Iskander, a six-year veteran of the company, the release said.

A search is being initiated to find a new CFO, the company said. The reason for Shepherd’s departure wasn’t disclosed, and a spokesperson didn’t immediately respond to a request for comment. “I am very confident that Tony will lead the finance team through a seamless transition and work closely with Advance’s new CEO when Shane officially joins in September,” Gene Lee, the company’s interim executive chair, said in the release.

The leadership changes coincided with news that Raleigh, North Carolina-based Advance Auto’s gross profits fell to $1.1 billion during the second quarter, a year-over-year decrease of 3.2%. While releasing the financial results, the auto parts company also announced a “comprehensive operational and strategic review.”

“The board will work with Shane and the management team to ensure Advance is taking the right steps to build a stronger, more resilient business for the benefit of all stakeholders,” Lee said in a separate release.

O’Kelly became CEO of HD Supply, a subsidiary of Home Depot, in December 2020. Prior to joining Home Depot, he was the CEO of PetroChoice, an automotive lubricants distributor. In his new role, O’Kelly, 54, will be entitled to an annual base salary of $1.1 million, according to a Securities and Exchange Commission filing from Advance Auto.

Greco, who has served as Advance Auto’s president and CEO since April 2016, announced in February that he planned to retire and serve in an advisory role through a transition period.

Iskander, 49, has served as Advance Auto’s senior vice president of finance and treasurer since 2020. Prior to joining the company in 2017, he spent more than a decade at global medical technology company Hillrom, where he held various finance positions. He was named interim CFO effective August 18, the same day that Shepherd departed, the company said.

“Mr. Shepherd’s departure is not the result of any disagreement regarding the Company’s financial reporting or accounting policies, procedures, estimates or judgments,” the SEC filing said.

Iskander will receive an increase in base salary to $406,000 and an increase in target 2024 equity award value to $350,000, as well as a monthly cash payment of $25,000 for each month during which he serves in the interim CFO role, the filing said.