DON MEIJ TO RETIRE AS CEO OF DOMINO’S BOARD APPOINTS MARK VAN DYCK AS CEO AND MANAGING DIRECTOR
Don Meij to retire after 22 years as CEO
Listed Domino’s in 2005 with 387 stores and sales of $300M
Today operates more than 3,700 stores in 12 markets, with sales of >$4B
The Board of Domino’s Pizza Enterprises (ASX: DMP) (Domino’s), today announced that the Company’s Chief Executive Officer and Managing Director, Don Meij will retire after almost 40 years with the Company, 22 of those as CEO.
After retiring, Mr Meij will work with the Board and Mark van Dyck for the next 12 months. The Board has appointed Mark van Dyck to succeed Mr Meij, effective 6 November 2024. The appointment follows a global search that considered a range of candidates.
Mr van Dyck served on the Executive Board of Compass Group, one of the world's leading providers of food services with a market capitalisation of $79 billion and operations across 33 countries. As Regional Managing Director, Asia Pacific, Mr van Dyck oversaw 66,000 employees in 11 countries and was responsible for serving more than 400 million meals annually.
Don Meij
The Company’s Chairman Jack Cowin said: “On behalf of the Board, I would like to thank Don and acknowledge his exceptional leadership and achievements”.
“Under his leadership Domino’s Pizza Enterprises Ltd grew from a Brisbane-based company to a truly global business - the market-leader in each of the markets the Company has operated for more than three years in Europe and the Asia-Pacific.
“Don has done an exceptional job of delivering positive outcomes for all our stakeholders, including franchise partners, shareholders and employees. He leaves an impressive legacy.”
Don Meij said: “It has been an incredible honour to be part of this company for the past 37 years and especially the past 22 years as CEO. Domino’s really has been my life. When I started as a delivery driver in Redcliffe, Queensland, I never imagined I’d become CEO of a truly global company with more than $4 billion in sales. I would like to thank the board and shareholders for their support over the past two decades.
“I’ve had the privilege of working with extraordinary teams, franchise partners and customers. Many of the incredible people I have worked with have gone from team members to franchise partners or executives around the world. I leave knowing that the business is well-positioned for an exciting new chapter
“While this decision was not easy, it’s the right time for me to step back and for new leadership to guide the next era of growth.
“I’ll always be proud of what we achieved together and proud I have had the opportunity to serve: it has been a life changing experience for me.”
New CEO & Managing Director Mark van Dyck
The Domino’s Board has appointed Mark van Dyck to succeed Mr Meij, effective 6 November 2024. The appointment follows a global search that considered a range of candidates.
“Mark has been an advisor to the Board for the past 12 months, so it was natural we would consider him in the search process. His extensive experience in global food service, combined with a track record of successful transformations makes him the ideal candidate,” Mr Cowin said.
During his time at Compass, Mr van Dyck doubled underlying growth and significantly increased profitability. He also restructured and accelerated growth and profitability of the Japanese business, and completed a strategic reset of the Australian business, making it one of the most profitable markets Globally for Compass.
Prior to Compass, Mr van Dyck spent 14 years in executive positions at The Coca Cola Company including Asia Group Director Customer Leadership, where he led transformation of relationships and business outcomes with retailers across the region. Previously, Mr van Dyck was Managing Director of both the Australian and Irish businesses for The Coca-Cola Company.
Mr van Dyck is Chairman of the Food and Agriculture Taskforce and was Chairman of the Australian Government-sponsored Asia Taskforce (incorporating the Business Council of Australia and Asia Society).
Mr van Dyck’s biography and employment details are attached.
TRADING UPDATE
Domino’s today announced a FY25 trading update for the first 17 weeks of trade. Group SSS is -1.2% (vs +2.7% in the pcp), with Australia positively compounding last year’s strong sales, and the Benelux successfully launching their new brand campaign. Singapore is delivering two years of strong compounding sales growth and Taiwan has returned to sales growth.
German sales remain negative after cycling record sales from the prior year, but have improved since the August trading update.
French and Japan sales remain negative year-to-date, with more work required in these markets to deliver positive sales.
INVESTOR RELATIONS
Materials, including video interviews with Don Meij and Mark van Dyck, are available here: https://investors.dominos.com.au/news
Domino’s Pizza Enterprises Ltd’s Annual General Meeting will be held in Brisbane tomorrow (November 6): https://investors.dominos.com.au/presentations/2024/10/13/dmp-annual-generalmeeting-6-november-2024
An Investor call will be held Thursday, November 7. To subscribe: https://investors.dominos.com.au/contact
ENDS
This release has been authorised for release by the Board of Directors. For further information, contact Nathan Scholz, Group Chief Communications & Investor Relations, at investor.relations@dominos.com.au Amanda Mains, Head of Communications ANZ | M: 0448 191 744 | E: media@dominos.com.au
About Domino’s Pizza Enterprises With more than eight pizzas sold every second and more than 3,700 stores in 12 markets (Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore and Cambodia) Domino’s Pizza Enterprises Limited (ASX: DMP) is all about delivering the world’s most delicious and versatile bonding food. Our pizza brings people closer. For more information, please visit www.dominos.com.au.
Background on Mark van Dyck
Professional Experience: Mr van Dyck has extensive experience in managing large-scale operations and delivering profitable growth across diverse markets. His most recent position as Regional Managing Director, Asia Pacific for Compass Group highlights his ability to manage complex, geographically diverse operations. In that role, he oversaw 66,000 employees in 11 countries and was responsible for serving more than 400 million meals annually. At Compass, Mr van Dyck spearheaded the transformation of the Asia Pacific division, doubling underlying growth and increasing operating margins by 300 basis points. His focus on operational excellence and innovation, including during the COVID-19 pandemic, led to the region achieving the best operating margin in the Group during that time. His experience includes turning around underperforming divisions, including major restructurings.
Key Achievements:
Leadership in Transformation: Mr van Dyck is known for his ability to develop and execute strategies that deliver both financial and operational improvements. At Compass APAC, he implemented a plan which saw the region accelerate growth across all key geographies. Under his leadership, India became the fastest growing region in the Group.
Operational Excellence: Mr van Dyck has consistently demonstrated his ability to drive operational efficiency. In Australia, he repositioned the business during a challenging period, removing $140 million in costs while delivering one of the highest operating margins globally within Compass.
Cultural Transformation: Throughout his career, Mr van Dyck has focused on leveraging highperformance teams. His leadership resulted in attracting top-tier talent through significant cultural transformation initiatives and a 50% gender balance in the MD tier at Compass APAC.
Sustainability and ESG Commitment: Mr van Dyck has a strong track record in embedding purpose and meaningful ESG into business strategy.
Personal:
Mr van Dyck has a BA (Hons) Business Administration, University of West London and is a Graduate of the Australian Institute of Company Directors (GAICD). Mark speaks French and has been a volunteer patrolling surf lifesaver for more than 16 years.
Remuneration
Role: CEO and Managing Director
Commencement date: 5 November 2024
Term: Continues until terminated by either party in accordance with the employment contract
Total Remuneration: The total remuneration package reflects the current benchmarking based on market capitalization and is lower than that of the prior CEO & Managing Director.
Total Fixed Remuneration: $1.585m per annum including superannuation and statutory entitlements, subject to annual review.
Restricted Share Grant: 50% of TFR in the form of fully vested deferred equity comprising shares to be issued at market price (being VWAP over 10 trading days comprising the 5 days before, the day of and 4 days after the AGM 2024), escrowed for 20 months and granted under the Company's share and option plan rules (Plan Rules). This restricted share grant is provided in lieu of a STI for FY25. No further short term incentives or bonuses will be provided in respect of FY25.
STI opportunity in later periods: Commencing in respect of FY26, the STI opportunity will be 100% of TFR if target key performance measures (KPIs) met. Incentives which are earned will be provided 50% cash and 50% in deferred equity comprising a right to receive shares having a value equal to the dollar amount of the incentive earned, at the market price of shares at the time of exercise of the right. The right is exercisable for 10 years after the date of grant, can only be exercised if the executive is employed at the time of exercise, is not transferrable and is granted under the Plan Rules. Shares issued on exercise of the right, including dividends and other distributions on those shares, will be escrowed for 1 year.
LTI opportunity: 100% of TFR in the form of performance rights granted under the Plan Rules. The number of rights will be the dollar amount of the aopportunity divided by the market price (being VWAP over 10 trading days comprising the 5 days before, the day of and 4 days after the 2024 AGM). The vesting conditions comprise a positive absolute total shareholder return, and minimum 6% Earnings Per Share (EPS) compound annual growth rate, up to 15% EPS CAGR. The vesting conditions will be tested over a 3 year performance period. Vested rights can be exercised for 5 years from the vesting date. Shares issued on exercise of the right, including dividends and other distributions on those shares, will be escrowed for 2 years.
Malus and clawback provisions apply to rights granted under the STI and LTI which permit the Board to lapse the right, forfeit or clawback shares issued on exercise of the right in certain circumstances including fraud, gross misconduct and material reputational damage to the Company.
Other benefits: The Company will provide accommodation for the executive in Brisbane.
Leave: 20 days annual leave and otherwise, statutory leave entitlements including long service leave.
Termination: Either party may terminate the contract with six months written notice. The company may terminate the contract at any time without notice if serious misconduct has occurred. The executive may terminate if there is a fundamental change to his employment roles and responsibilities as CEO of an ASX listed entity and be entitled to an exit payment equal to 6 months fixed remuneration. On cessation of employment, subject to Board discretion, rights under the STI and LTI will lapse unless cessation is due to either the Company or the executive giving notice without cause, the cessation is by agreement, a fundamental change has occurred or other special circumstances have occurred under the Plan Rules. In these circumstances, the executive is entitled to STI and LTI benefits pro rata to the executive's service prior to cessation of employment.
Post termination restrictions: restrictions on being engaged in a competing business for a period of up to 18 months after termination, solicitation of employees and interference with commercial relationships Other: Customary provisions regarding the protection of intellectual property, confidential information and discoveries.
