John Rickel, CFO of Group 1 Automotive, has announced that he step down from his role in August and retire by the end of the year. Daniel McHenry, currently the CFO of the UK subsidiary, has been appointed as the new CFO.
Group 1, which has its head office in the Memorial City area, has 119 dealerships in the 15 US states, 50 in the UK and 17 in Brazil. The company furloughed 4,800 US and 2,800 UK employees in response to the downturn caused by COVID-19. In its earnings call in early May, the company said it expected to bring back 500 US employees by the beginning of June.
Mr Rickel has been CFO for almost 15 years and worked at Ford for 21 years prior to that. His time-based restricted stock awards will fully vest on the second anniversary of his retirement. At the end of December 2019, Mr Rickel had 38,322 unvested shares. At that time they were worth $3.8 million. They are down to $2.5 million at today’s stock price.
Mr Rickel won’t receive a severance payment or 2020 bonus and his performance-based equity awards will be forfeited.
Mr McHenry was born in Northern Ireland and joined Group 1 in 2007 as part of the acquisition of Chandlers BMW in southern England. He will receive a base salary of $575,000 (temporarily reduced by 20% to $460,000) and will relocate to Houston.